Schroder Eur Real Est Inv Trust PLC Early Refinancing Completed: St Cloud Office Loan (3545X)

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: [phone] 

Shilla Pindoria

   Schroder Investment Management Limited                                     Tel: [phone] 
   Dido Laurimore/Richard Gotla/Ollie Parsons                                    Tel: [phone] 

FTI Consulting

1. LTV based on 30 September 2023 independent valuations.

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December 20, 2023 02:00 ET (07:00 GMT)