Trading Update

RNS Number : 1518Y

Sirius Real Estate Limited

07 September 2015

 



7 September 2015

Sirius Real Estate Limited

("Sirius Real Estate" or the "Company")

Update on Acquisitions and New Debt Facility

Sirius Real Estate, the leading operator of branded business parks providing conventional and flexible workspace to the German market, is pleased to confirm that three of the five mixed-use business parks being acquired (the "Acquisition Portfolio"), as announced on 04 June 2015, have been completed and that the 2 remaining assets, Aachen and Cologne, are notarised and are expected to be completed in October 2015. The completion dates are broadly in line with expectations except Cologne which is now completing 2 months ahead of schedule.

The five assets in the Acquisition Portfolio will be acquired for a total purchase consideration of €57.24m including acquisition costs and in aggregate will contribute €5.33m of annual rental income, providing €4.64m of net operating income after deducting irrecoverable service charge and landlord maintenance costs to the Company. The purchase of the Acquisition Portfolio is anticipated to be partly funded by a 5-year debt facility secured against the Acquisition Portfolio, with an expected margin of 1.25% over EURIBOR. Negotiations on this new debt facility are well advanced.

The Company is also pleased to announce that it has agreed a new 7-year €59m debt facility with SEB AG to refinance the two existing Macquarie debt facilities. The interest rate on the SEB AG debt facility has been fixed at 1.84% for the full 7 year term, lower than previously anticipated. This debt facility will reduce the annualised interest cost of the Company by approximately €2.6m.

Andrew Coombs, Chief Executive Officer, said: "We are pleased with the progress being made at Sirius so far this year.  The acquisition of these five new sites coupled with the refinanced Macquarie debt at a fixed seven year interest rate of 1.84% will have a significant impact on Sirius's profitability and funds from operations going forward. Across the wider portfolio, we are continuing to execute our other organic growth initiatives and look forward to providing further updates of our progress."

Enquiries:

Sirius Real Estate                         

Andrew Coombs, CEO                                                                                   [phone]

Alistair Marks, CFO

Peel Hunt - Nomad and Joint Broker

Capel Irwin                                                                                                         [phone]

Hugh Preston

Canaccord Genuity Limited - Joint Broker

Bruce Garrow                                                                                                      [phone]

Chris Connors

Mark Whitmore 

PSG Capital - Corporate Advisor and Sponsor  

David Tosi                                                                                                           [phone]

Willie Honeyball

Novella                                     

Tim Robertson                                                                                                  [phone]

Ben Heath        

 

END

 

 

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