Schroder European REIT refinances largest 2023 debt early

Schroder European Real Estate Investment Trust plc has revealed that it has completed the early refinancing of the company's largest debt expiry in 2023, a €14m (£12.3m) loan with VR Bank Westerwald, secured against its Hamburg and Stuttgart office investments. It said competitive financing terms were obtained from five different lenders with VR Bank Westerwald being the most competitive. The refinancing is for 4.75 years and based on a margin of 0.85%, in line with the existing margin. Due to the competitive terms, the company added it has elected to extend the facility by a further €4m (£3.5m). The facility will be drawn on 1 April 2023 with expiry 30 December 2027. The total interest cost has been fixed at the time of signing at 3.80% being the 5 year euro swap rate (2.95%) plus 0.85% margin. With this new facility, the company's third party debt totals €84.7m (£74.6m) across seven loan facilities. This represents a loan to value ('LTV') of c. 30%1 against the company's gross asset value (c. 20%1 net of cash) and well below the LTV prospectus limit of 35% net of cash. All facilities are on a non-recourse lending basis. Jeff O'Dwyer, fund manager for Schroder Real Estate Investment Management Limited, said: "The willingness of VR Bank Westerwald and four other lenders to offer very competitive financing terms for a regear of the current loan facility, even extending the existing loan amount, is indicative of our strong relationship with existing financing partners and good reputation in the market with lenders. “It is a sign of confidence that they have in our investment management team with its local multi-sector expertise and the portfolio's exposure to indexed linked, high quality real estate in growth locations. The Company has a robust balance sheet which is well positioned to offer flexibility to both strengthen the strategy and react to changing market conditions as opportunities arise."

Schroder European REIT refinances largest 2023 debt early

Due to the competitive terms, the company added it has elected to extend the facility by a further €4m (£3.5m)

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