Schroder Real Estate Investment Trust Limited (SREIT) has repaid £12m of debt following the disposal of its investment in Plantation Place in May. This reduces their securitised loan from £163.5m to £151.5m.
SREIT will break a pro-rata proportion of its interest rate swaps as a condition of the loan repayment on 18 July.
This will reduce the mark-to-market value of the Company’s interest rate swaps to -£24.5m.
SREIT has repaid the debt with cash held inside the security pool charged to the group’s lenders. Swap break costs of £1.9m will be funded from cash outside the security pool.
Andrew Sykes, chairman of SREIT, said “The board and investment manager continue to believe that, while other investment opportunities are being sought and appraised, currently, greater shareholder value can be derived from repaying debt compared with making new acquisitions.”
Sophia.furber@estatesgazette.com
