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SCHRODER EUROPEAN REAL ESTATE INV TRUST PLC - New German Debt Facilities Secured Financing Delivers Further Investment Capacity

Release Date: 17/08/2016 08:00
Code(s): SCD     PDF:  
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New German Debt Facilities Secured Financing Delivers Further Investment Capacity

Schroder European Real Estate Investment Trust PLC
(Incorporated in England and Wales)
Registration number: 09382477
JSE Share Code: SCD
LSE Ticker: SERE
ISIN number: GB00BY7R8K77

                                                                              17 August 2016

                           NEW GERMAN DEBT FACILITIES SECURED
                     FINANCING DELIVERS FURTHER INVESTMENT CAPACITY

The Board of Schroder European Real Estate Investment Trust plc (the “Company”)
announces that it has completed two new debt facilities in Germany with Deutsche
Pfandbrief Bank (“PBB”), for a total of €30.5 million and at a blended fixed rate of 1.10%.

The first loan of €16.5 million is for a term of 10 years and is secured against the two retail
assets acquired earlier in the year in Berlin and Frankfurt. The loan is interest only and
represents a loan to value (“LTV”) of approximately 46%, with a fixed rate of interest of
1.31% p.a.

The second loan is secured against the two office buildings owned in Stuttgart and Hamburg
and is for €14.0 million, representing an LTV of approximately 48%. This loan is also interest
only, but has a loan term of seven years and has a fixed rate of interest of 0.85% p.a.

Combined with the €18.2 million loan recently announced against the Casino retail assets in
France, the Company now has total outstanding debt of €48.7 million across three facilities,
representing an LTV of approximately 24% against the overall gross asset value of the
Company. The current blended all-in interest rate is 1.19%, substantially below the portfolio
net initial yield against purchase price of 5.6% p.a.

Following these financings, the Company now has capacity for further investment of
approximately €70 million and is targeting further accretive acquisitions in the growth cities
and regions of continental Europe, in line with its stated strategy.

Sir Julian Berney, Non-Executive Chairman of the Company, commented: “We have
assembled a high quality property portfolio through the full deployment of the Company’s
initial equity and the income return from these assets will be enhanced by the very attractive
financing rates we have been able to secure. The Company’s overall gearing strategy is to
apply debt against those assets where it is most accretive to returns, whilst maintaining the
Company’s maximum gearing cap of 35% LTV at the portfolio level and having a variety of
loan maturities and debt facilities, to provide maximum flexibility. The loans we have put in
place to date successfully achieve this.”


Enquiries:

Duncan Owen/Tony Smedley
Schroder Real Estate Investment Management Limited                 Tel: 020 7658 6000

Ria Vavakis
Schroder Investment Management Limited                             Tel: 020 7658 2371

Dido Laurimore/Ellie Sweeney/Richard Gotla                         Tel: 020 3727 1000
FTI Consulting

JSE Sponsor: PSG Capital Proprietary Limited

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