Schroder Trust refinances Dutch industrial portfolio below existing margin
Schroder European Real Estate Investment Trust has completed a five-year debt refinancing secured against the company’s five-asset Dutch industrial portfolio.
The refinancing is based on a margin of 2 percent, which is 0.15 percent below the existing margin. Reflecting the competitive terms offered by four different banks, the company has elected to extend the facility by a further €4.5 million ($4.71 million), to €13.8 million ($14.45 million), by adding two unleveraged industrial assets in Alkmaar and Venray as security.
The new facility has been fixed at approximately 5.3 percent, which is the five-year euro swap rate (approximately 3.3 percent) plus 2.0 percent margin. The debt is accretive given the net initial yield of the Dutch industrial portfolio is approximately 6.2 percent.
Following this transaction, the company’s third-party debt totals €85.5 million ($89.52 million) across seven loan facilities. The loan-to-value of approximately 31 perc