(Alliance News) - Schroder European Real Estate Investment Trust PLC said Wednesday it has completed three new lease agreements at its Saint-Cloud office investment in Paris, expected to generate EUR800,000 of annual rental income.
In addition, the trust has increased its existing debt facility with Banque Populaire by EUR4 million to EUR17 million.
The loan reflects a loan-to-value of 45% against the Saint-Cloud property, and matures in December 2024 with a margin of 1.3% above the three month-Euribor rate.
Proceeds from the loan will go towards funding capital expenditure across the portfolio, including works at Schroder European's other Paris office asset, Boulogne-Billancourt.
Concerning the lease agreements, the first is an extension with cloud operating system company Outscale, taking its occupancy to 2,600 square metres from 1,695 square metres. The six-year fixed term lease starts in April next year, at a rent of EUR600,000 per annum.
The second agreement is with IT firm Ascott Informatique for 850 square metres, starting September this year at a rent of EUR170,00 per annum.
The third agreement is a 12-year lease with an unnamed government body for 270 square metres of storage accommodation, at a rent of EUR22,000 per annum.
"We continue to make good progress with our asset management programme, demonstrating the ongoing demand from a diverse range of occupiers for space in our properties. The transformational redevelopment of Boulogne-Billancourt remains on track and we look forward to providing the market with further updates in due course," said Jeff O'Dwyer, of Schroder Real Estate Investment Management Ltd.
Shares in Schroder European REIT were untraded on Wednesday at 117.50 pence in London, as were its Johannesburg shares at ZAR21.69.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Schroder Eur.r (SERE)