REG - Schroder Euro Real - Early Refinancing Completed: St Cloud Office Loan

Schroder European Real Estate Investment TrustAnnouncement

20/12/2023 07:00

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RNS Number : 3545X  Schroder Eur Real Est Inv Trust PLC  20 December 2023

20 December 2023

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

("SEREIT"/ the "Company" / "Group")

 

EARLY REFINANCING COMPLETED OF ST CLOUD OFFICE LOAN

 

Schroder European Real Estate Investment Trust plc, the Company investing in
European growth cities and regions, announces that it has completed the early
refinancing of its St Cloud, Paris office loan, extending the term by three
years from 15 December 2024 to 15 December 2027 with the option of a further
year.

 

The refinancing is based on a margin of 1.9% and, reflecting the strength of
its balance sheet, the Company has elected to de-lever, reducing the loan
principal from €17.0 million to €14.0 million. As a result, the asset loan
to value ("LTV") will fall from 45% to 37%.

 

The Company will continue to benefit from the existing interest rate hedge,
capped at 1.25%, expiring 15 December 2024. A further interest rate hedge
(capped at 3.25%) has been acquired covering the remaining loan period to 15
December 2027. This allows the company to benefit from the expected decline in
interest rates.

 

Following this transaction, the Company's third-party debt totals €82.5
million across six loan facilities. The loan to value ('LTV') reduces from 33%
to 32%(1) against the Company's gross asset value (c. 24%(1) net of cash),
comfortably below the LTV prospectus limit of 35% net of cash. All facilities
are on a non-recourse lending basis.

 

Following draw down, the weighted average loan term increases by seven months
to 3.0 years (as of 15 December 2023). The Company's blended all-in interest
rate increases c. 10 basis points to 3.0%.

 

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management
Limited, commented: "We have successfully managed the Company's main
re-financing risk, pre-empting the tougher lending environment we anticipate
facing select offices. The Company has a robust balance sheet, providing the
necessary flexibility to deliver on our strategy and react to changing market
conditions as new opportunities arise."

 

-Ends-

Enquiries:

 

Jeff O'Dwyer

Schroder Real Estate Investment Management Limited
Tel: 020 7658 6000

 

Shilla Pindoria

Schroder Investment Management
Limited
  Tel: 020 7658 6000

 

Dido Laurimore/Richard Gotla/Ollie
Parsons
    Tel: 020 3727 1000

FTI Consulting

1. LTV based on 30 September 2023 independent valuations.

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