REG - Schroder Euro Real - Refinancing Completed of Dutch Portfolio Loan

Schroder European Real Estate Investment TrustAnnouncement

02/10/2023 07:00

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RNS Number : 0218O  Schroder Eur Real Est Inv Trust PLC  02 October 2023

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

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

 

REFINANCING COMPLETED OF DUTCH INDUSTRIAL PORTFOLIO LOAN, BELOW EXISTING
MARGIN

 

Schroder European Real Estate Investment Trust plc, the Company investing in
European growth cities and regions, announces that it has completed a
five-year debt refinancing secured against the Company's five-asset Dutch
industrial portfolio.

 

The refinancing is based on a margin of 2.0%, which is 0.15% below the
existing margin. Reflecting the competitive terms offered by four different
banks, the Company has elected to extend the facility by a further €4.5
million, to €13.8 million, by adding two un-levered industrial assets in
Alkmaar and Venray as security.

 

The new facility has been fixed at c. 5.3% being the five-year euro swap rate
(c. 3.3%) plus 2.0% margin. The debt is accretive given the net initial yield
of the Dutch industrial portfolio is c.6.2%.

Following this transaction, the Company's third party debt totals €85.5
million across seven loan facilities. The loan to value ('LTV') of c. 31%(1)
against the Company's gross asset value (c. 23%(1) net of cash) is 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 nine months
to 2.6 years (as of 30 September 2023). The Company's blended all-in interest
rate increases c. 30 basis points  to 2.9%. The Company is having positive
ongoing discussions regarding two debt expiries due in 2024.

 

Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management
Limited, commented:

"Following on from the successful German office refinancing concluded at the
end of 2022, the terms of this new facility are a strong endorsement of our
strategy and testament to the relationships we have with existing financing
partners as well as our reputation in the market. 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."

 

1.    LTV based on 30 June 2023 independent valuations

 

-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

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