Financial services group Canada Life has agreed to provide Schroder Real Estate Investment Trust (SREIT) with a new loan facility of £114.5 mln (€134 mln) to refinance its existing securitised loan in full.
Financial services group Canada Life has agreed to provide Schroder Real Estate Investment Trust (SREIT) with a new loan facility of £114.5 mln (€134 mln) to refinance its existing securitised loan in full.
Drawdown of the new loan and the simultaneous repayment of the existing loan are due to complete on 15 April 2013.
SREIT said that completing a re-financing of the existing securitised loan that matures in July 2014 had been a major strategic objective.
The key loan terms include a loan-to-value ratio (LTV) of up to 50% calculated with reference to an independent valuation. Some 80% of the loan matures in 15 years and 20% in 10 years.
The fixed rate loan is tied to the 15-year Gilt rate. Assuming the current 15-year Gilt rate and dependent on the LTV at drawdown, the company expects a final fixed interest cost of approximately 5%.
The loan does not include any amortisation and provides the flexibility to sell existing properties and acquire new ones.
The LTV covenant ratio has been set at 65% and an interest cover ratio of 185%.
