3 April 2024
SCHRODER
EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
REFINANCING OF FRENCH LOGISTICS DEBT EXPIRY
Schroder European Real Estate
Investment Trust plc, the Company investing in European growth
cities and regions, is pleased to announce that it has completed
the refinancing of a €8.6 million loan with the existing lender
Saar LB, secured against its Rennes logistics
investment.
The new five year facility is based
on a margin of 1.6%, a slight increase from the existing 1.4%
margin and is due to expire on 26 March 2029. The total interest
cost has been fixed at 4.3% being the five year euro swap rate (c.
2.7%) plus 1.6% margin.
With this new facility, the
Company's third-party debt totals €82.5 million across seven loan
facilities. This represents a loan to value
("LTV") of c. 33%1 against the Company's gross asset
value (c.24%1 net of cash) and is comfortably below the
LTV prospectus limit of 35% net of cash. All facilities are on a
non-recourse lending basis.
Following draw down, the portfolio's
weighted average loan term increases by six months from 2.7 years
as of 1 April 2024 to 3.2 years. The Company's blended all-in
interest rate increases marginally from 2.8% to 3.0%. The Company's
next re-financing is in June 2026, secured against its Berlin DIY
and Frankfurt grocery investments.
Raphael Berdot, Lead Investment
Manager for France at Schroder Real Estate Investment Management
Limited, commented:
"The lending appetite for well
located, institutional quality logistics remains strong. With
competitive margins and swap rates falling, the overall debt cost
remains accretive when compared to the current asset valuation
yield of c.6%. The availability of debt on competitive terms gives
support to current values and liquidity."
1. LTV based on 30 December
2023 independent valuations
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
FTI Consulting
Tel: 020 3727
1000