SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC
("SEREIT"/ the "Company" / "Group")
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REFINANCING COMPLETED OF DUTCH INDUSTRIAL PORTFOLIO LOAN, BELOW EXISTING MARGIN
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Schroder European Real Estate Investment Trust plc, the Company investing in European growth cities and regions, announces that it has completed a five-year debt refinancing secured against the Company's five-asset Dutch industrial portfolio.
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The refinancing is based on a margin of 2.0%, which is 0.15% below the existing margin. Reflecting the competitive terms offered by four different banks, the Company has elected to extend the facility by a further €4.5 million, to €13.8 million, by adding two un-levered industrial assets in Alkmaar and Venray as security.
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The new facility has been fixed at c. 5.3% being the five-year euro swap rate (c. 3.3%) plus 2.0% margin. The debt is accretive given the net initial yield of the Dutch industrial portfolio is c.6.2%.
Following this transaction, the Company's third party debt totals €85.5 million across seven loan facilities. The loan to value ('LTV') of c. 31%1 against the Company's gross asset value (c. 23%1 net of cash) is comfortably below the LTV prospectus limit of 35% net of cash. All facilities are on a non-recourse lending basis.
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Following draw down, the weighted average loan term increases by nine months to 2.6 years (as of 30 September 2023). The Company's blended all-in interest rate increases c. 30 basis points  to 2.9%. The Company is having positive ongoing discussions regarding two debt expiries due in 2024.
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Jeff O'Dwyer, Fund Manager for Schroder Real Estate Investment Management Limited, commented:
"Following on from the successful German office refinancing concluded at the end of 2022, the terms of this new facility are a strong endorsement of our strategy and testament to the relationships we have with existing financing partners as well as our reputation in the market. 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."
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1.   LTV based on 30 June 2023 independent valuations
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-Ends-
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Enquiries:
Jeff O'Dwyer
Schroder Real Estate Investment Management Limited          Tel: 020 7658 6000
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Shilla Pindoria
Schroder Investment Management Limited                 Tel: 020 7658 6000
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Dido Laurimore/Richard Gotla/Ollie Parsons                Tel: 020 3727 1000
FTI Consulting
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