Schroder Euro Real - Early Refinancing of Largest 2023 Debt Expiry

Schroder European Real Estate Investment Trust

22/12/2022 14:00

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RNS Number : 6611K  Schroder Eur Real Est Inv Trust PLC  22 December 2022

22 December 2022

 

SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC

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

 

EARLY REFINANCING OF LARGEST 2023 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 early refinancing of the Company's largest debt expiry in 2023,
a €14 million loan with VR Bank Westerwald, secured against its Hamburg and
Stuttgart office investments.

 

Competitive financing terms were obtained from five different lenders with VR
Bank Westerwald being the most competitive. The refinancing is for 4.75 years
and based on a margin of 0.85%, in line with the existing margin. Due to the
competitive terms, the Company has elected to extend the facility by a further
€4 million. The facility will be drawn on 1 April 2023 with expiry 30
December 2027. The total interest cost has been fixed at the time of signing
at 3.80% being the 5 year euro swap rate (2.95%) plus 0.85% margin.

With this new facility, the Company's third party debt totals €84.7 million
across seven loan facilities. This represents a loan to value ('LTV') of c.
30%(1) against the Company's gross asset value (c. 20%(1) net of cash) and
well 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 one year from
1.6 years as of December 2022 to 2.6 years. The Company's blended all-in
interest rate increases around 60 basis points from 1.9% to 2.5%. The Company
is in various discussions with lenders regarding its other two debt expiries
which occur within the next 12 months and is confident in its ability to
refinance these loans.

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

"The willingness of VR Bank Westerwald and four other lenders to offer very
competitive financing terms for a regear of the current loan facility, even
extending the existing loan amount, is indicative of our strong relationship
with existing financing partners and good reputation in the market with
lenders. It is a sign of confidence that they have in our investment
management team with its local multi-sector expertise and the portfolio's
exposure to indexed linked, high quality real estate in growth locations. The
Company has a robust balance sheet which is well positioned to offer
flexibility to both strengthen the strategy and react to changing market
conditions as opportunities arise."

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

FTI
Consulting
Tel: 020 3727 1000

 

 

 

1. LTV based on 30 September 2022 independent valuations

 

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