Funding Update

RNS Number : 1706A

Sirius Real Estate Limited

17 February 2014

 

                    Sirius Real Estate Limited                            

("Sirius" or "the Company")

Funding Update

Sirius Real Estate Limited ("Sirius") is pleased to provide the following update on disposals and the refinancing of its loan facility with BerlinHyp AG ("BerlinHyp").

On 4 December 2013 the Company, as part of its Interim Results, announced the proposed refinancing of the Company's two major loan facilities. Sirius announced the completion of the ABN refinancing on 17 December 2013 and is today pleased to announce that with respect to the refinancing of the existing BerlinHyp facility, a new five year €115.0 million facility with BerlinHyp and Deutsche Pfandbriefbank AG, on the terms previously announced, has received all relevant internal credit approvals from the respective banks.  Signing and draw down are subject to satisfactory documentation and fulfilment of the conditions precedent. 

The Company is expecting the documentation to be finalised and for draw down to occur in March 2014. The existing BerlinHyp facility, which this new facility replaces, expires on 31 March 2014 so break costs will be minimised.

Additionally Sirius has completed the sale of a land package in Dusseldorf for €4.2m and notarised the sale of another land package in Bremen for €2.1m.  When completed, the Company will have sold more than €8.4m of non-income producing land since its non-core asset disposal programme commenced in October 2012.  Further opportunities exist to create value for shareholders through either disposal or development of surplus land, both of which have been successfully undertaken previously. The equity created by disposals, along with the capital available from the Equity Raising completed in December 2013, will allow the Company to accelerate its capital expenditure programme to take advantage of earnings enhancing opportunities within the current portfolio and to seek attractive new acquisition opportunities.

Andrew Coombs, CEO of Sirius Facilities comments, "I am very pleased to confirm BerlinHyp's continuing support for Sirius and welcome Deutsche Pfandbriefbank AG as a new lender. We look forward to completing the new facility soon and focusing on the growth opportunities ahead of us."

Enquiries:

Sirius Real Estate                         

Andrew Coombs, CEO                                                                          [phone]

Alistair Marks, CFO

Peel Hunt

Capel Irwin                                                                                             [phone]

Hugh Preston

Novella Communications                                    

Tim Robertson                                                                                       [phone]

Ben Heath        

 

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