With this new facility, the company’s third-party debt totals €82.5m across seven loan facilities
03 April 2024 - 08:33
byJACQUELINE MACKENZIE
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This showroom in Cannes, southern France is owned by Schroder European real estate investment trust. Picture: SUPPLIED
Schroder European Real Estate Investment Trust, which invests in European growth cities and regions, has completed the refinancing of a €8.6m loan with the existing lender Saar LB, secured against its Rennes logistics investment in Brittany, France.
The new five-year facility is based on a margin of 1.6%, a slight increase from the existing 1.4% margin and is due to expire on March 26 2029, Schroder said in a statement on Wednesday.
The total interest cost has been fixed at 4.3% being the five-year euro swap rate (2.7%) plus 1.6% margin.
With this new facility, the company’s third-party debt totals €82.5m across seven loan facilities. This represents a loan to value (LTV) of about 33% against the company’s gross asset value of about 24% net of cash, and is comfortably below the LTV prospectus limit of 35% net of cash.
The company’s next refinancing is in June 2026, secured against its Berlin DIY and Frankfurt grocery investments.
“The lending appetite for well-located, institutional quality logistics remains strong. With competitive margins and swap rates falling, the overall debt cost remains accretive when compared to the current asset valuation yield of 6%. The availability of debt on competitive terms gives support to current values and liquidity,” said Raphael Berdot, lead investment manager for France at Schroder.
In December, the company completed the early refinancing of the St Cloud, Paris, office loan based on a margin of 1.9%. In that instance, the company elected to de-lever, reducing the loan principal from €17m to €14m. The loan term was extended by three years to December 15 2027, with the option of a further year extension.
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Schroder refinances Rennes logistics investment loan
With this new facility, the company’s third-party debt totals €82.5m across seven loan facilities
Schroder European Real Estate Investment Trust, which invests in European growth cities and regions, has completed the refinancing of a €8.6m loan with the existing lender Saar LB, secured against its Rennes logistics investment in Brittany, France.
The new five-year facility is based on a margin of 1.6%, a slight increase from the existing 1.4% margin and is due to expire on March 26 2029, Schroder said in a statement on Wednesday.
The total interest cost has been fixed at 4.3% being the five-year euro swap rate (2.7%) plus 1.6% margin.
With this new facility, the company’s third-party debt totals €82.5m across seven loan facilities. This represents a loan to value (LTV) of about 33% against the company’s gross asset value of about 24% net of cash, and is comfortably below the LTV prospectus limit of 35% net of cash.
The company’s next refinancing is in June 2026, secured against its Berlin DIY and Frankfurt grocery investments.
“The lending appetite for well-located, institutional quality logistics remains strong. With competitive margins and swap rates falling, the overall debt cost remains accretive when compared to the current asset valuation yield of 6%. The availability of debt on competitive terms gives support to current values and liquidity,” said Raphael Berdot, lead investment manager for France at Schroder.
In December, the company completed the early refinancing of the St Cloud, Paris, office loan based on a margin of 1.9%. In that instance, the company elected to de-lever, reducing the loan principal from €17m to €14m. The loan term was extended by three years to December 15 2027, with the option of a further year extension.
MackenzieJ@arena.africa
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.