SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

(“SEREIT” or the “Company” and, together with its subsidiaries, the “Group”)

Proposed managed wind-down and return of capital to shareholders

The Board of Schroder European Real Estate Investment Trust plc and the Investment Manager, having assessed a variety of options for the Company, including mechanisms to address the persistent discount that the Company’s shares trade at relative to its Net Asset Value (the “Discount”), announces it intends to present formal proposals to shareholders for a managed wind-down of the Company.

The equity markets continue to disadvantage smaller, listed vehicles, especially sub £100 million market cap, irrespective of management quality or the suitability and effective delivery of strategies, with growing evidence that institutional investors want exposure to larger vehicles that offer enhanced liquidity, diversification and cost efficiencies. Despite offering shareholders unique access to a diversified portfolio of Continental European commercial real estate, delivering strong underlying property performance which has supported over £80 million of dividend payments since IPO, as well as maintaining a robust balance sheet, the Company’s size and low levels of liquidity have adversely affected the share price performance for a prolonged period of time.

The Board has actively explored various strategies, including share buybacks and a transition towards thematic or sector-specific investments. However, primarily as a result of continued macro uncertainty and the above-mentioned structural shift in investor sentiment towards larger UK real estate equities, it does not expect these strategies to significantly close the discount or support substantial long-term growth. In light of this, and following discussions with major shareholders, the Board, together with the Investment Manager, has concluded that it is in the best interests of shareholders to present formal proposals for a managed wind-down of the Company.

The Board and Investment Manager are of the opinion that the Company’s portfolio can be realised in the direct property market at a value in excess of what is currently implied by the prevailing share price.

The Board intends to publish a circular in due course to convene a general meeting, where it will seek shareholders’ approval through an ordinary resolution to modify the Company’s investment objective and policy necessary for a managed wind-down. Additionally, the Board and the Investment Manager have initiated discussions regarding the provision of investment management services during the wind-down, under revised terms aimed at better aligning the Investment Manager with the goal of maximising shareholder returns in a timely fashion. More details will be included in the Circular.

Should shareholder approval be granted, the Board will endeavour to realise all of the Company’s investments in a cost-effective manner, balancing the goal of maximising value from these investments with the timely return of capital to shareholders. Realisations may take the form of single asset or multi-asset disposals, with the proceeds used to repay borrowings and make timely returns of capital to shareholders.

The Company’s diversified portfolio totals 14 assets in high-growth locations across France, Germany and the Netherlands, which should underpin buyer interest, with the Investment Manager having the added benefit of leveraging the wider Schroders pan-European platform. Given the current market backdrop (as outlined in the Company’s most recently published Interim Report) and heightened geopolitical risks, the managed wind-down process is expected to take approximately two to three years to complete. This timing also allows us to execute targeted asset management initiatives to position the assets for sale and manage the French tax litigation.

Should shareholders vote to approve the managed wind-down, it is the Board’s current intention to continue paying dividends in order to maintain the Company’s investment trust status. The level of dividend payments will decline as the portfolio income reduces and as capital is returned to shareholders.