Schroder Real Estate Investment Trust repays debt

Schroder Real Estate Investment Trust has served notice to repay 20m pounds of its debt following the disposal of Minerva House in London.

Schroder Real Estate Investment Trust has served notice to repay 20m pounds of its debt following the disposal of Minerva House in London.

The company, which announced it had completed the disposal of the house for £30m on Monday, will make the loan repayment on January 15th.

The firm must break a pro-rata proportion of its interest rate swaps, crystallising an estimated break cost of £2.9m as a condition of the repayment.

It is also required to reduce the total negative mark-to-market value of the company's interest rate swaps to -£16.3m, adopting the value as at December 20th this year.

The repayment will cut back the company's securitised loan from £134.5m to £114.5m and reduce the annual loan interest cost from £7.7m to £6.5m.

It will leave the company with total cash of about £29.8m, of which approximately £9.2m remains outside the security pool.

"The repayment of the debt is a continuation of the company's strategy to reduce the overall quantum of borrowings which has reduced from £173.5m during 2012," Schroder said in a statement.

"The company continues to pursue refinancing options well in advance of the loan maturing in July 2014."

The company's net loan-to-value following the debt repayment will be approximately 31%, based on the latest property valuation as at September 30th.

Shares fell 0.64% to 38.75p at 16:08 Friday.

RD

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023