Trading Statement

RNS Number : 4822P

Sirius Real Estate Limited

02 October 2013

 



Sirius Real Estate Limited

("Sirius" or "the Company")

Trading Update

Sirius Real Estate Limited is pleased to provide the following update for the six months to 30 September 2013 ("the period").

This has been another good period for the business with the Company expected to be trading in line with management expectations for the first six months of the financial year. Overall demand for space has remained constant from our core SME market which stands to benefit from an improving economic outlook in Germany.

The Company has also made good progress towards completing the refinancing of the group. As announced in August 2013, the Company's major bank facility with Berlin Hannoversche Hypothekenbank AG ('BerlinHyp') of €208m was reduced when Sirius raised long term financing of €52 million through a bond issue secured against four of the assets from the BerlinHyp security pool.  Sirius also raised €6.5 million through a share placing to pay down the BerlinHyp debt and permit the release of the four assets.  Additionally, we are pleased to announce that the €4m of the bond issue for which Sirius initially subscribed, has now been sold on to third parties.  As at 30 September 2013, following the bond issue, share placing and after scheduled amortisation payments, the BerlinHyp loan stood at €149.4 million.  We are making good progress on refinancing the remainder of this debt on a long-term basis.

The Company's other loan facility is with ABN AMRO, a part of the Royal Bank of Scotland ('RBS'), which the Company has successfully reduced to €31.3 million, down from €49.2 million as at 31 March 2013. Under a new repayment plan, RBS has agreed, in principle, to extend the entire loan facility to the end of November 2013 on terms similar to previous extensions and has also given Sirius an option to extend the last €5 million of the loan facility until the end of February 2014. The Company intends to repay the outstanding amounts through a combination of refinancing and cash generated from the disposals of non-core properties. The final €5 million loan is expected to be secured against a single asset which is currently being marketed for sale in separate lots.

The Company looks forward to providing a more detailed trading update in December 2013 when it will announce its half yearly results for the six months to 30 September 2013.

Enquiries:

Sirius                          

Andrew Coombs, CEO                                                                          [phone]

Alistair Marks, CFO

Peel Hunt

Capel Irwin                                                                                            [phone]

Hugh Preston

Novella Communications                                    

Tim Robertson                                                                                       [phone]

Ben Heath        

 

END

 

 

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