Schroder Eur Real Est Inv Trust PLC Early Refinancing Completed: St Cloud Office Loan (3545X)
20 December 2023 - 6:00PM
UK Regulatory
TIDMSERE
RNS Number : 3545X
Schroder Eur Real Est Inv Trust PLC
20 December 2023
20 December 2023
SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
EARLY REFINANCING COMPLETED OF ST CLOUD OFFICE LOAN
Schroder European Real Estate Investment Trust plc, the Company
investing in European growth cities and regions, announces that it
has completed the early refinancing of its St Cloud, Paris office
loan, extending the term by three years from 15 December 2024 to 15
December 2027 with the option of a further year.
The refinancing is based on a margin of 1.9% and, reflecting the
strength of its balance sheet, the Company has elected to de-lever,
reducing the loan principal from EUR17.0 million to EUR14.0
million. As a result, the asset loan to value ("LTV") will fall
from 45% to 37%.
The Company will continue to benefit from the existing interest
rate hedge, capped at 1.25%, expiring 15 December 2024. A further
interest rate hedge (capped at 3.25%) has been acquired covering
the remaining loan period to 15 December 2027. This allows the
company to benefit from the expected decline in interest rates.
Following this transaction, the Company's third-party debt
totals EUR82.5 million across six loan facilities. The loan to
value ('LTV') reduces from 33% to 32%(1) against the Company's
gross asset value (c. 24%(1) net of cash), comfortably 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
seven months to 3.0 years (as of 15 December 2023). The Company's
blended all-in interest rate increases c. 10 basis points to
3.0%.
Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment
Management Limited, commented: "We have successfully managed the
Company's main re-financing risk, pre-empting the tougher lending
environment we anticipate facing select offices. The Company has a
robust balance sheet, providing the necessary flexibility to
deliver on our strategy and react to changing market conditions as
new opportunities arise."
-Ends-
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/Ollie Parsons Tel: 020 3727 1000
FTI Consulting
1. LTV based on 30 September 2023 independent valuations.
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END
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