Schroder European Real Estate Investment Trust has completed an early refinancing and extension of its largest debt maturity due in 2023.
The company has refinanced a €14m (£12.3m) loan with VR Bank Westerwald secured against offices in Hamburg and Stuttgart.
The bank offered what the REIT described as “the most competitive” of refinancing options from five different institutions: a 4.75-year facility with a margin of 0.85% over the five-year swap rate, in line with the existing package, and a total interest cost of 3.8%. The REIT has extended the facility by €4m.
The deal puts the REIT’s loan to value at 30% compared to a prospectus limit of 35%.
Fund manager Jeff O’Dwyer said: “The willingness of VR Bank Westerwald and four other lenders to offer very competitive financing terms for a re-gear of the current loan facility, even extending the existing loan amount, is indicative of our strong relationship with existing financing partners and good reputation in the market with lenders.”
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
