New debt facility

RNS Number : 7298C

Schroder Eur Real Est Inv Trust PLC

03 October 2018

 

 3 October 2018

NEW DEBT FACILITY AT ACCRETIVE INTEREST RATE SECURED AGAINST RECENT DUTCH ACQUISITIONS

Schroder European Real Estate Investment Trust plc (the "Company"), the company investing in European growth cities, announces it has completed a new debt facility in the Netherlands with HSBC, for €9.25 million, which will be accretive to returns.

The loan is secured against the three Dutch industrial assets recently acquired for €19.8 million. The loan proceeds form part of the Company's remaining reinvestment capacity of approximately €15 million, following the profitable sale of its French supermarket assets in July.    

The five year interest only facility has been agreed at a margin of 2.15% above the three month Euribor rate. With Euribor currently negative, it is applied at zero, resulting in a current total all-in interest cost of 2.15% p.a. This compares favorably with the acquisition net income yield of the properties of 6.5%. The Company will acquire an interest rate cap to limit the maximum future potential interest cost if Euribor were to increase to no more than 3.4% p.a.   

Following this agreement, the Company now has total outstanding debt of €64.4 million across five facilities, representing an LTV of approximately 26% against the overall gross asset value of the Company. The weighted average debt maturity is approximately six years and the current blended all-in interest rate is 1.4%. This is substantially below the portfolio net initial yield against current valuation of c.6% and accretive to income returns.     

Enquiries:

Duncan Owen/Jeff O'Dwyer

Schroder Real Estate Investment Management Limited                  Tel: [phone]

Ria Vavakis

Schroder Investment Management Limited                                     Tel: [phone]

Dido Laurimore/Richard Gotla                                                        Tel: [phone]

FTI Consulting   

 

END

 

 

MSCXLLFBVBFXFBK