Last checked at 
17 Aug 2016 07:00
17 August 2016
NEW GERMAN DEBT FACILITIES SECURED
-FINANCING DELIVERS FURTHER INVESTMENT CAPACITY-
The Board of Schroder European Real Estate Investment Trust plc (the "Company") announces that it has completed two new debt facilities in Germany with Deutsche Pfandbrief Bank ("PBB"), for a total of €30.5 million and at a blended fixed rate of 1.10%.
The first loan of €16.5 million is for a term of 10 years and is secured against the two retail assets acquired earlier in the year in Berlin and Frankfurt. The loan is interest only and represents a loan to value ("LTV") of approximately 46%, with a fixed rate of interest of 1.31% p.a.
The second loan is secured against the two office buildings owned in Stuttgart and Hamburg and is for €14.0 million, representing an LTV of approximately 48%. This loan is also interest only, but has a loan term of seven years and has a fixed rate of interest of 0.85% p.a.
Combined with the €18.2 million loan recently announced against the Casino retail assets in France, the Company now has total outstanding debt of €48.7 million across three facilities, representing an LTV of approximately 24% against the overall gross asset value of the Company. The current blended all-in interest rate is 1.19%, substantially below the portfolio net initial yield against purchase price of 5.6% p.a.
Following these financings, the Company now has capacity for further investment of approximately €70 million and is targeting further accretive acquisitions in the growth cities and regions of continental Europe, in line with its stated strategy.
Sir Julian Berney, Non-Executive Chairman of the Company, commented: "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. The Company's overall gearing strategy is to apply debt against those assets where it is most accretive to returns, whilst maintaining the Company's maximum gearing cap of 35% LTV at the portfolio level and having a variety of loan maturities and debt facilities, to provide maximum flexibility. The loans we have put in place to date successfully achieve this."
Enquiries:
Duncan Owen/Tony Smedley
Schroder Real Estate Investment Management Limited Tel: 020 7658 6000
Ria Vavakis
Schroder Investment Management Limited Tel: 020 7658 2371
Dido Laurimore/Ellie Sweeney/Richard Gotla Tel: 020 3727 1000
FTI Consulting