SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - New French Debt Facilities Secured At Accretive Interest Rate

New French Debt Facilities Secured At Accretive Interest Rate

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




                                                                                         18 December 2017


                      NEW FRENCH DEBT FACILITIES SECURED AT ACCRETIVE INTEREST RATE

Schroder European Real Estate Investment Trust Plc (the "Company"), the company investing in
European growth cities, announces it has completed a new debt facility in France with Banque
Populaire, for €13 million.

The loan is secured against the Saint Cloud office building in Paris that was acquired by the Company in
February this year. The loan proceeds form part of the Company’s €30 million of remaining investment
capacity and will be used to make further acquisitions completing the initial investment programme.

The loan represents 38% LTV against the value of the Saint Cloud asset. The seven year interest only
facility has been agreed at a margin of 1.30% above the 3 month Euribor rate. With Euribor currently
negative, it is applied at zero, resulting in a current total all-in interest cost of 1.30% p.a. This compares
favorably with the acquisition net income yield of the Saint Cloud property of 9.5%. The Company has
acquired an interest rate cap to limit the maximum future potential interest cost if Euribor were to
increase, to an all-in rate of 2.55% p.a.

Following this agreement, the Company now has total outstanding debt of €73.4 million across five
facilities, representing an LTV of approximately 29% against the overall gross asset value of the
Company. The current blended all-in interest rate is 1.3%, substantially below the portfolio net initial
yield against current valuation of c. 6%.

Sir Julian Berney Bt., Chairman of the Board, commented: “We are pleased to have secured this
additional long term debt financing at an interest rate that compares favorably to the property income
return of the portfolio. This is in line with our strategy of targeting gearing against those assets where
it is most accretive to returns, whilst maintaining modest overall gearing and headroom to draw further
debt. We have identified a range of potential investment opportunities that the loan proceeds could
be deployed into and that would be accretive to the Company’s earnings and progress us towards
distributing the target 5.5% dividend.”

Enquiries:

Duncan Owen/Jeff O’Dwyer
Schroder Real Estate Investment Management Limited                          Tel: 020 7658 6000

Ria Vavakis
Schroder Investment Management Limited                                      Tel: 020 7658 2371
Dido Laurimore/Richard Gotla/Ellie Sweeney   Tel: 020 3727 1000
FTI Consulting

JSE Sponsor: PSG Capital

Date: 18/12/2017 12:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.