Refinancing at Saarbrücken and MSCI AA ESG rating
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
30 January 2025
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Company" or the "Group")
Sirius agrees 3.264% refinancing at Saarbrücken and has MSCI AA ESG rating reaffirmed
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has further demonstrated its ability to attract financing at favourable rates having secured a new debt package at its Saarbrücken business park in south-west Germany. This news follows the Company's announcement earlier this month that Sirius had raised €350 million through an approximately five times oversubscribed senior unsecured corporate bond issuance, maturing in 2032 and carrying a 4% coupon. The Company also announces that it has once again been recognised as a leader in sustainable financing having had its MSCI AA ESG Rating reaffirmed.
Sirius has agreed a €13 million, 5-year loan at 3.264% with Sparkasse Saarbrücken bank, which refinances the Company's asset in Saarbrücken. The Sirius Office Center Saarbrücken is a well located 47,000 sqm edge of town business park comprising primarily offices, a modern conference centre, as well as light industrial and production space. Saarbrücken is the state capital of Saarland near the border with France and is a major industrial and transport centre. As of September 2024, the Saarbrücken site had an occupancy of 78% and was producing a net operating income of €2.9 million, reflecting a 20% improvement since it was acquired by the Company in 2018.
MSCI's ESG Ratings aim to measure a company's management of financially relevant ESG risks and opportunities. The reconfirmation of Sirius'AA ESG Rating by MSCI reflects the Company's ongoing commitment to sustainability and corporate responsibility.
Sirius' weighted average debt maturity is currently at 4.2 years, with the Company's total average cost of debt at 2.6% (vs 3.5 years and 2.1% at 30 September 2024).
Chris Bowman, Chief Financial Officer of Sirius Real Estate, commented: "Whilst de minimis in comparison to the oversubscribed €350 million bond we issued earlier this month, the refinancing of our Saarbrücken business park is nonetheless important in that it demonstrates our continued ability to refinance our assets, as well as the Company, at favourable rates and it highlights the attractiveness of the European lending market that is available to Sirius. These two financings also reflect the quality of our underlying assets and the appealing security of income they provide. I am also pleased that the efforts we have made with regards to our corporate responsibility have been recognised by MSCI's reaffirmation of our AA ESG Rating today."
ENDS
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0) 20 3059 0855
FTI Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney / James McEwan
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the equity shares (commercial companies) category of the London Stock Exchange and the premium segment of the main board of the JSE Limited. It is a leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K. As of 30 September 2024, the Group's owned portfolio comprised 145 assets let to 10,025 tenants with a total book value of €2.4 billion, generating a total annualised rent roll of €214 million. Sirius also holds a 35% stake in Titanium, its €350+ million German-focused joint venture with clients of AXA IM Alts.
The Company's strategy centres on acquiring business parks at attractive yields and integrating them into its network of sites - both under the Sirius and BizSpace names and alongside a range of branded products. The business then seeks to reconfigure and upgrade existing and vacant space to appeal to the local market via intensive asset management and investment and may then choose to refinance or dispose of assets selectively once they meet maturity, to release capital for new investment. This active approach allows the Company to generate attractive returns for shareholders through growing rental income, improving cost recoveries and capital values, and enhancing returns through securing efficient financing terms.
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
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JSE Sponsor
PSG Capital
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