Debt Repayment

RNS Number : 6602N

Schroder Real Estate Inv Trst Ld

02 October 2012

 



2 October 2012

Schroder Real Estate Investment Trust Limited

('SREIT'/ the 'Company' / 'Group')

SCHRODER REAL ESTATE INVESTMENT TRUST ANNOUNCES £17 MILLION FURTHER DEBT REPAYMENT

Following the announcement on 1 October 2012 of the successful completion of three disposals totalling £20 million at a blended yield of 5.3%, the Company has served notice to repay a further £17 million of debt on 15 October 2012, the next interest payment date. 

As a condition of the loan repayment, the Company will also break a pro-rata proportion of its interest rate swaps, crystallising an estimated break cost of £2.6 million and reducing the total negative mark-to-market value of the Company's interest rate swaps to approximately -£20.6 million.

Repaying the debt will further reduce the Company's securitised loan from £151.5 million to £134.5 million and reduce the Company's annual loan interest cost by approximately £1 million, from £8.7 million to £7.7 million.

Following this debt repayment and related swap break costs the Company will have total cash of approximately £25.6 million, of which approximately £14.3 million remains outside the security pool. Based upon the latest independent property valuation as at 30 June 2012, the Company's net loan-to-value following the debt repayment will be approximately 36%. 

The repayment of the debt is a continuation of the Company's strategy to reduce the overall quantum of borrowings. The repayment allows sufficient operational flexibility for the Company to invest further cash in the existing portfolio to ensure it continues to benefit from asset management activities.

For further information:

Schroder Property Investment Management Limited Duncan Owen / Nick Montgomery	020 7658 6000
FTI Consulting Dido Laurimore / Daniel O'Donnell	020 7831 3113

 

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