Sirius Real Estate Limited Sirius completes debut Schuldschein issuance (0376F)
March 05 2020 - 1:00AM
UK Regulatory
TIDMSRE
RNS Number : 0376F
Sirius Real Estate Limited
05 March 2020
5 March 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius completes debut Schuldschein issuance
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, today announces that Sirius has issued a EUR50 million
unsecured Schuldschein loan offering a blended interest rate of
1.60%, with an average maturity of 3.7 years.
This debt instrument is the Company's first unsecured loan
facility and was subscribed to by a selected number of German and
international investors.
Funds raised from the issuance will be used for general
corporate purposes including the acquisition of unencumbered assets
and further investment into Titanium, Sirius' joint venture with
AXA IM - Real Assets.
The Schuldschein loan was structured in tranches with maturities
of three and five years and a blended all-in interest rate of 1.6%
made up of both fixed and floating rates, and no amortisation.
The issuance is in line with Sirius' financing strategy and the
Company remains committed to keeping its net LTV ratio below 40%
whilst continuing to grow its asset base, cash flows and earnings.
Investing these proceeds into the Company's acquisition pipeline is
not only accretive to earnings, but as the assets will be acquired
on an unencumbered basis, will also provide Sirius with much more
flexibility for further asset recycling as well as improving the
Company's risk profile. Unsecured corporate debt also allows the
Company to act more swiftly and flexibly in executing its
acquisition strategy.
HSBC and Bayerische Landesbank were joint arrangers of the
issuance.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate,
commented: "Innovation, flexibility and diversity are some of the
foundations of our financing strategy and we are very pleased to
have achieved that with our inaugural unsecured Schuldschein
issuance, a first by a UK listed real estate business."
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285010110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150
Email: siriusrealestate@tavistock.co.uk
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main market and
premium segment of the London Stock Exchange and the main board of
the Johannesburg Stock Exchange. It is a leading operator of
branded business parks providing conventional space and flexible
workspace in Germany. The Company's core strategy is the
acquisition of business parks at attractive yields, the integration
of these business parks into its network of sites under the
Company's own name as well as offering a range of branded products
within those sites, and the reconfiguration and upgrade of existing
and vacant space to appeal to the local market, through intensive
asset management and investment. The Company's strategy aims to
deliver attractive returns for shareholders by increasing rental
income and improving cost recoveries and capital values, as well as
by enhancing those returns through financing its assets on
favourable terms. Once sites are mature and net income and values
have been optimised, the Company may take the opportunity to
refinance the sites to release capital for investment in new sites
or consider the disposal of sites in order to recycle equity into
assets which present greater opportunity for the asset management
skills of the Company's team.
In July 2019, the Company completed the formation of its
Titanium real estate investment joint venture with clients
represented by AXA Investment Managers - Real Assets. Titanium was
formed through the acquisition by AXA IM - Real Assets, on behalf
of its clients, from Sirius, of a 65% stake in five business parks
across Germany. Sirius will retain the remaining 35% and will act
as operator of the assets, on a fee basis. Subject to suitable
investment opportunities, AXA IM - Real Assets and Sirius may
consider opportunities to grow the JV's portfolio primarily through
the acquisition of larger stabilised business park assets and
portfolios of assets with strong tenant profiles and occupancy.
Sirius will continue to grow its wholly owned portfolio through
acquisitions of more opportunistic assets, where it can capitalise
on its asset management expertise to maximise utilisation of the
space, grow occupancy and improve quality of the tenants. The
strategies have been clearly defined so that the JV does not
conflict with Sirius's existing business.
For more information, please visit:
www.sirius-real-estate.com
Follow us on LinkedIn at
https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566
JSE Sponsor
PSG Capital
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END
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