Further 12 Million Debt Repayment

RNS Number : 7517H

Schroder Real Estate Inv Trst Ld

16 July 2012

 



16 July 2012

Schroder Real Estate Investment Trust Limited

('SREIT'/ the 'Company' / 'Group')

SCHRODER REAL ESTATE INVESTMENT TRUST MAKES FURTHER £12 MILLION DEBT REPAYMENT

Following Schroder Real Estate Investment Trust Limited's previously announced disposal of its investment in Plantation Place on 2 May 2012, the Company announces that it has now repaid a further £12 million of debt, reducing its securitised loan from £163.5 million to £151.5 million.  The repayment reduces the Company's annual loan interest cost by a further £0.7 million from £9.4 million to £8.7 million and follows the previously announced debt repayment of £10 million in April 2012.

As a condition of the loan repayment, on 18 July the Company will break a pro-rata proportion of its interest rate swaps, crystallising a break cost of £1.9 million and reducing the total negative mark-to-market value of the Company's interest rate swaps to -£24.5 million.

The debt has been repaid from cash held inside the security pool charged to the Group's lenders, with the swap break costs to be funded from cash outside the security pool.  This reduces total cash held by the Group to £25.4 million, of which £17.9 million remains outside the security pool. Based upon the last published independent property valuation as at 31 March 2012, the Company's net loan-to-value following the debt repayment is 38%. 

Further details of the Company's strategy will be provided within the Company's annual report and accounts to be released to the market on 17 July 2012.

Commenting, Andrew Sykes, Chairman of SREIT said:

"The Board and Investment Manager continue to believe that, whilst other investment opportunities are being sought and appraised, currently, greater shareholder value can be derived from repaying debt compared with making new acquisitions." 

- ENDS-

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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