First Tranche of Debt Financing Secured

4 August 2016

FIRST TRANCHE OF DEBT FINANCING SECURED

The Board of Schroder European Real Estate Investment Trust plc (the "Company") announces it has entered into the Company's first debt facility, with Credit Agricole, for €18.2 million. The loan is secured against the two French grocery retail investments acquired on 28 June 2016 and represents a loan to value against those assets of 45% and a loan to value of approximately 10.5% against the overall gross asset value of the Company.

The seven year interest only loan facility is at a margin of 1.35% above the 3 month Euribor rate. With Euribor currently negative, it is applied at zero, resulting in a current total all-in interest cost of 1.35% p.a., comparing favourably with the portfolio net income return of 5.6% on acquisition. The Company will acquire an interest rate cap to limit the maximum future potential interest cost if Euribor were to increase, to an all-in rate of between 2.35% p.a. and 2.85% p.a.

Andrew MacDonald, Head of Real Estate Finance at Schroder REIM, commented: "In accordance with our stated strategy at IPO, we have successfully deployed the Company's initial equity and are now raising long term debt against specific assets, at interest rates that compare very favourably to the property income return of the portfolio.

We will continue to target gearing against those assets where it is most accretive to returns, whilst maintaining the Company's maximum gearing cap of 35% LTV at portfolio level. We are currently in the process of securing additional debt against the Company's German assets and plan to deploy proceeds into an identified acquisition pipeline, remaining focused on large, liquid Continental Europe cities, whose growth prospects exceed their domestic economies."

Duncan Owen/Tony Smedley

Schroder Real Estate Investment Management Limited Tel: 020 7658 6000

Ria Vavakis

Schroder Investment Management Limited Tel: 020 7658 2371

Dido Laurimore/Ellie Sweeney/Richard Gotla Tel: 020 3727 1000

FTI Consulting