SCHRODER EUROPEAN REAL ESTATE INVESTMENT TRUST PLC - New Debt Facility At Accretive Interest Rate Secured Against Recent Dutch Acquisitions

New Debt Facility At Accretive Interest Rate Secured Against Recent Dutch Acquisitions

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


3 October 2018


NEW DEBT FACILITY AT ACCRETIVE INTEREST RATE SECURED AGAINST RECENT DUTCH
                                ACQUISITIONS

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 the Netherlands with
HSBC, for €9.25 million, which will be accretive to returns.

The loan is secured against the three Dutch industrial assets recently acquired for €19.8 million.
The loan proceeds form part of the Company’s remaining reinvestment capacity of
approximately €15 million, following the profitable sale of its French supermarket assets in July.

The five year interest only facility has been agreed at a margin of 2.15% above the three month
Euribor rate. With Euribor currently negative, it is applied at zero, resulting in a current total all-
in interest cost of 2.15% p.a. This compares favorably with the acquisition net income yield of
the properties of 6.5%. The Company will acquire an interest rate cap to limit the maximum
future potential interest cost if Euribor were to increase to no more than 3.4% p.a.

Following this agreement, the Company now has total outstanding debt of €64.4 million across
five facilities, representing an LTV of approximately 26% against the overall gross asset value of
the Company. The weighted average debt maturity is approximately six years and the current
blended all-in interest rate is 1.4%. This is substantially below the portfolio net initial yield
against current valuation of c.6% and accretive to income returns.

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                                            Tel: 020 3727 1000
FTI Consulting

JSE Sponsor: PSG Capital

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