Debt Repayment

RNS Number : 1883U

Schroder Real Estate Inv Trst Ld

21 December 2012

 



21 December 2012

Schroder Real Estate Investment Trust Limited

('SREIT'/ the 'Company' / 'Group')

SCHRODER REAL ESTATE INVESTMENT TRUST ANNOUNCES £20 MILLION FURTHER DEBT REPAYMENT

Following the announcement on 17 December 2012 of the successful completion of the disposal of Minerva House in London for £30 million at a yield of 5.37%, the Company has served notice to repay a further £20 million of debt on 15 January 2013, the next interest payment date. 

As a condition of the loan repayment, the Company will break a pro-rata proportion of its interest rate swaps, crystallising an estimated break cost of £2.9 million and reducing the total negative mark-to-market value of the Company's interest rate swaps to approximately -£16.3 million, adopting the value as at 20 December 2012.

Repaying the debt will further reduce the Company's securitised loan from £134.5 million to £114.5 million and reduce the Company's annual loan interest cost by approximately £1.2 million, from £7.7 million to £6.5 million.

Following this debt repayment and related swap break costs the Company will have total cash of approximately £29.8 million, of which approximately £9.2 million remains outside the security pool.  Based upon the latest published independent property valuation as at 30 September 2012, the Company's net loan-to-value following the debt repayment will be approximately 31%. 

The repayment of the debt is a continuation of the Company's strategy to reduce the overall quantum of borrowings which has reduced from £173.5 million during 2012.  The Company continues to pursue refinancing options well in advance of the loan maturing in July 2014. 

For further information:

Schroder Property Investment Management Limited Duncan Owen / Nick Montgomery	020 7658 6000
FTI Consulting Dido Laurimore / Daniel O'Donnell	020 7831 3113

 

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