(Alliance News) - Schroder Real Estate Investment Trust Ltd on Wednesday said it has completed debt refinancing and set the break cost and final interest rate on its new loan.
The new GBP129.6 million fixed rate loan is with Canada Life Investment and has been extended to an average of 16.5 years from 8.5 years. Moreover, the total interest rate has been shrunk to 2.5% per annum from 4.4%. This has created "an immediate interest saving of GBP2.5 million per annum".
The UK-focused trust has also "negotiated break cost of GBP25.8 million" which it will fund from disposals.
The interest saving will be paid to Schroder REIT's shareholders in the form of a higher dividend of GBP16.0 million a year - a 19% increase - commencing October 1.
Shares in Schroder REIT were up 0.5% at 57.00 pence in London on Wednesday.
By Anna Farley; annafarley@alliancenews.com
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Schroder Real (SREI)