LONDON (Alliance News) - Schroder European Real Estate Investment Trust PLC on Wednesday said it has secured new two debt facilities in Germany with Deutsche Pfandbrief Bank for a total of EUR30.5 million.
The two facilities have been secured at a blended fixed rate of 1.1%, Schroder European Real Estate said.
The first loan of EUR16.5 million is for a term of ten years, is interest only and is secured against two retail assets in Berlin and Frankfurt. The loan represents a loan-to-value ratio of around 46%, with a fixed rate of interest of 1.31% per year, Schroder European Real Estate said.
The second loan of EUR14.0 million is secured against two office buildings in Stuttgart and Hamburg, and represents a loan-to-value ratio of 48%. The loan is interest only, with a term of seven years and has a fixed rate of interest of 0.85% per year.
The two loans take Schroder Real Estate's total outstanding debt to EUR48.7 million across three facilities, representing a loan-to-value ratio of around 24% against the overall gross asset value of Schroder Real Estate, the company said. The current blended all-in interest rate is 1.19%.
Schroder Real Estate said the loans provide it with capacity for further investment of around EUR70.0 million and said it was targeting further acquisitions in the "growth cities and regions" of continental Europe.
"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," said Non-Executive Chairman Julian Berney.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Schroder Eur.r (SERE)