Sirius Real Estate Limited Acquisition and New Banking Facility (9942N)
01 November 2016 - 10:15PM
UK Regulatory
TIDMSRE
RNS Number : 9942N
Sirius Real Estate Limited
01 November 2016
1 November 2016
Sirius Real Estate Limited
("Sirius Real Estate" or the "Company")
Completion of the acquisition of Wiesbaden Business Park for
EUR17.7 million
and New Banking Facility
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, is pleased to announce the completion of the acquisition
of the Wiesbaden business park for EUR17.7 million (including
acquisition costs), taking the number of business parks in the
Company's portfolio to 43.
The total consideration for the acquisition represents a 9.1%
EPRA net initial yield. Currently, the site has 19,602 sqm of gross
lettable area of which 65% of this space is occupied with 3 tenants
paying a total annual rental income of EUR1.88 million on leases
with an average lease length remaining of 2.7 years.
Wiesbaden is one of the core cities in the Frankfurt/Rhine-Main
regions and the business park offers primarily good quality office
space which in particular fits Sirius's flexible multi-tenanted
workspace strategy.
The Company continues to reduce the average cost of its
borrowings and is pleased to confirm it has completed a new 7 year
EUR70 million banking facility with BerlinHyp with an all-in fixed
interest rate of 1.48% for the term of the loan to replace an
existing EUR39.3 million facility which was incurring an all-in
fixed interest of 2.73%. This has further reduced the Company's
weighted average cost of debt to 2.0%. The extra funds from the
increased facility are being used in part to fund the previously
announced Dresden acquisition as well as the Wiesbaden
property.
The interest rate achieved is a record low fixed rate for Sirius
and highlights the acquisition yield to interest rate opportunity
currently available to the Company. Sirius has a further EUR10
million of equity remaining from the June 2016 equity raise, which
it is intending to use to acquire further assets.
Andrew Coombs Chief Executive Officer of Sirius Real Estate,
said, "We are very pleased to have completed the acquisition of
this excellent site and to have agreed this long term low interest
new facility with BerlinHyp."
Enquiries:
Sirius Real Estate +49 (0)30 285010110
Andrew Coombs, CEO
Alistair Marks, CFO
Peel Hunt +44 (0)20 7418 8900
Capel Irwin
Edward Fox
Canaccord Genuity Limited +44 (0)20 7523 8000
Bruce Garrow
Chris Connors
JSE Sponsor: PSG Capital +27 (0)21 887 9602
David Tosi
Willie Honeyball
Novella +44 (0)20 3151 7008
Tim Robertson
Toby Andrews
Background to Sirius Real Estate:
Established in February 2007, Sirius Real Estate, is the leading
operator of branded business parks providing conventional space and
flexible workspace in Germany. The Company owns and operates a
portfolio of 43 business parks which together include over 400
buildings offering over 1.3 million sqm of gross lettable space
comprising mainly offices, production areas and storage facilities.
Sirius operates out of its head office in Berlin and employs circa
201 people in Germany. In December 2014, Sirius was the first
company to gain a secondary listing on Johannesburg Stock Exchange
under the fast track process, in addition, to a primary listing on
the AIM market of the London Stock Exchange.
For more information, please visit:
www.sirius-real-estate.com
Images of the Sirius property portfolio are available from:
https://www.flickr.com/photos/sirius_re/
This information is provided by RNS
The company news service from the London Stock Exchange
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November 01, 2016 07:15 ET (11:15 GMT)