Wrap Text
Update on Funding and Acquisitions
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
Share Code: SRE
ISIN Code: ISIN GG00B1W3VF54
5 May 2016
Sirius Real Estate Limited
("Sirius" or "the Company" or "the Group")
Update on Funding and Acquisitions
Sirius Real Estate, the leading operator of branded business parks providing conventional space
and flexible workspace in Germany, is pleased to provide the following update on the refinancing
of its existing debt facility (“Existing Facility”) with BerlinHyp and Deutsche Pfandbriefbank (“PBB”)
as well as the acquisition of two new business parks.
The Existing Facility of €110.4 million, which had a blended interest rate of 3.61% and an expiry
term of three years, has now been refinanced with a new debt facility (“New Facility”), provided by
the same consortium of BerlinHyp and PBB. The New Facility of €137.0 million has been
negotiated on more favourable terms for Sirius, with €94.5 million at an interest rate of 1.66%, fixed
for the full 7-year term, and €42.5 million on a floating rate of 1.25% over 3 month Euribor (but not
less than 0%). Non-recurring costs associated with this refinancing, including early redemption
fees and swap breakage costs on the Existing Facility, are expected to be around €5.6 million. Of
this amount, €3.6 million is expected to impact upon Net Asset Value immediately, while the
remainder, representing arrangement fees on the New Facility, will be amortised over the seven
year term. The Company anticipates that the New Facility will reduce the annualised interest cost
to the Group by approximately €1.7 million despite the increased loan size. The Group’s weighted
average cost of debt following this refinancing will be around 2.25%, down from 3.3% as at 30
September 2015 and from 4.3% prior to the Macquarie refinancing in September 2015.
In addition, the Company is pleased to announce that the €26.6 million surplus from the New
Facility will be used to complete the acquisition of two business parks in Markgroeningen and
Krefeld, for a total consideration of €22.2 million, of which the former property completed on 4 May
2016 and the latter is expected to complete before the end of May. Once completed, the two assets
are anticipated to add a further €2.5 million to annualised rental income and €2.0 million to Net
Operating Income.
Markgroeningen is situated close to Sirius’s business parks in Stuttgart and Ludwigsburg. The
property is being acquired on a 15.2% EPRA net initial yield (equating to €154 per sqm of capital
value), a vacancy of 31.5% and a weighted average lease length remaining of 4.9 years. With the
anchor tenant recently secured by Sirius for a five year term, Sirius has designed a capital
investment programme for the vacant space across both warehouse, Smartspace, conventional
office and manufacturing with a view to transforming the offering at the park.
Krefeld is located in Fichtenhain, near the Group’s existing assets in Dusseldorf and Essen. The
property is being acquired on an 8.4% EPRA net initial yield (equating to €1,176 per sqm of capital
value), a vacancy of 6.4% and a weighted average lease length remaining of 3.4 years. The site
is a high-quality income producing site comprising flexible warehouse, manufacturing and office
space.
Andrew Coombs, CEO of Sirius, comments, "I am very pleased to confirm BerlinHyp's and PBB’s
continuing support for Sirius and welcome the new facility which was agreed on more favourable
terms which reflects well on the business. The fact that we have also been able to fund two new
acquisitions with this long-term low-cost facility means that these transactions are significantly
earnings enhancing. The two new sites at Markgroeningen and Krefeld will provide a good balance
of earnings accretion and value-add opportunity."
Sirius intends to announce its final results for the year ended 31 March 2016 on 23 May 2016.
Enquiries:
Sirius Real Estate
Andrew Coombs, CEO +49 (0)30 285010110
Alistair Marks, CFO
Peel Hunt – Nomad and Joint Broker
Capel Irwin +44 (0)20 7418 8900
George Huntley
PSG Capital – JSE Sponsor
David Tosi +27 (0)21 887 9602
Willie Honeyball
Canaccord Genuity Limited - Joint Broker
Bruce Garrow +44 (0)20 7523 8000
Chris Connors
Mark Whitmore
Novella
Tim Robertson +44 (0)20 3151 7008
Ben Heath
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