Sirius completes debut Schuldschein issuance
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 €50 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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