Schroder Eur Real Est Inv Trust PLC New debt facility (7298C)
03 October 2018 - 4:00PM
UK Regulatory
TIDMSERE
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 EUR9.25 million, which will be accretive to
returns.
The loan is secured against the three Dutch industrial assets
recently acquired for EUR19.8 million. The loan proceeds form part
of the Company's remaining reinvestment capacity of approximately
EUR15 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 EUR64.4 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: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Richard Gotla Tel: 020 3727 1000
FTI Consulting
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END
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