REG - Schroder Euro Real - Refinancing of French Logistics Debt Expiry

Schroder European Real Estate Investment TrustAnnouncement

03/04/2024 07:00

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RNS Number : 0015J  Schroder Eur Real Est Inv Trust PLC  03 April 2024

3 April 2024

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

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

 

REFINANCING OF FRENCH LOGISTICS DEBT EXPIRY

 

Schroder European Real Estate Investment Trust plc, the Company investing in
European growth cities and regions, is pleased to announce that it has
completed the refinancing of a €8.6 million loan with the existing lender
Saar LB, secured against its Rennes logistics investment.

 

The new five year facility is based on a margin of 1.6%, a slight increase
from the existing 1.4% margin and is due to expire on 26 March 2029. The total
interest cost has been fixed at 4.3% being the five year euro swap rate (c.
2.7%) plus 1.6% margin.

 

With this new facility, the Company's third-party debt totals €82.5 million
across seven loan facilities. This represents a loan to value ("LTV") of c.
33%(1) against the Company's gross asset value (c.24%(1) net of cash) and 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 portfolio's weighted average loan term increases by
six months from 2.7 years as of 1 April 2024 to 3.2 years. The Company's
blended all-in interest rate increases marginally from 2.8% to 3.0%. The
Company's next re-financing is in June 2026, secured against its Berlin DIY
and Frankfurt grocery investments.

 

Raphael Berdot, Lead Investment Manager for France at Schroder Real Estate
Investment Management Limited, commented:

"The lending appetite for well located, institutional quality logistics
remains strong. With competitive margins and swap rates falling, the overall
debt cost remains accretive when compared to the current asset valuation yield
of c.6%. The availability of debt on competitive terms gives support to
current values and liquidity."

 

1.  LTV based on 30 December 2023 independent valuations

 

 

 

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

FTI Consulting
                                               Tel:
020 3727 1000

 

 

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