REG - Sirius Real Estate - Acquisition and New Banking Facility <Origin Href="QuoteRef">SRET.L</Origin>

Sirius Real EstateAnnouncement

01/11/2016 11:15

RNS Number : 9942N
Sirius Real Estate Limited
01 November 2016
1 November 2016
Sirius Real Estate Limited
("Sirius Real Estate" or the "Company")
Completion of the acquisition of Wiesbaden Business Park for 17.7 million 
and New Banking Facility
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the completion of the acquisition of the Wiesbaden business park for 17.7 million (including acquisition costs), taking the number of business parks in the Company's portfolio to 43.
The total consideration for the acquisition represents a 9.1% EPRA net initial yield. Currently, the site has 19,602 sqm of gross lettable area of which 65% of this space is occupied with 3 tenants paying a total annual rental income of 1.88 million on leases with an average lease length remaining of 2.7 years. 
Wiesbaden is one of the core cities in the Frankfurt/Rhine-Main regions and the business park offers primarily good quality office space which in particular fits Sirius's flexible multi-tenanted workspace strategy.
The Company continues to reduce the average cost of its borrowings and is pleased to confirm it has completed a new 7 year 70 million banking facility with BerlinHyp with an all-in fixed interest rate of 1.48% for the term of the loan to replace an existing 39.3 million facility which was incurring an all-in fixed interest of 2.73%. This has further reduced the Company's weighted average cost of debt to 2.0%. The extra funds from the increased facility are being used in part to fund the previously announced Dresden acquisition as well as the Wiesbaden property.
The interest rate achieved is a record low fixed rate for Sirius and highlights the acquisition yield to interest rate opportunity currently available to the Company. Sirius has a further 10 million of equity remaining from the June 2016 equity raise, which it is intending to use to acquire further assets. 
Andrew Coombs Chief Executive Officer of Sirius Real Estate, said, "We are very pleased to have completed the acquisition of this excellent site and to have agreed this long term low interest new facility with BerlinHyp."
Enquiries:
Sirius Real Estate  +49 (0)30 285010110 
Andrew Coombs, CEO 
Alistair Marks, CFO  
Peel Hunt   +44 (0)20 7418 8900
Capel Irwin 
Edward Fox  
Canaccord Genuity Limited   +44 (0)20 7523 8000 
Bruce Garrow 
Chris Connors 
JSE Sponsor: PSG Capital +27 (0)21 887 9602 
David Tosi 
Willie Honeyball 
Novella  +44 (0)20 3151 7008 
Tim Robertson 
Toby Andrews
Background to Sirius Real Estate:
Established in February 2007, Sirius Real Estate, is the leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company owns and operates a portfolio of 43 business parks which together include over 400 buildings offering over 1.3 million sqm of gross lettable space comprising mainly offices, production areas and storage facilities. Sirius operates out of its head office in Berlin and employs circa 201 people in Germany. In December 2014, Sirius was the first company to gain a secondary listing on Johannesburg Stock Exchange under the fast track process, in addition, to a primary listing on the AIM market of the London Stock Exchange.
For more information, please visit: www.sirius-real-estate.com
Images of the Sirius property portfolio are available from:https://www.flickr.com/photos/sirius_re/

This information is provided by RNS
The company news service from the London Stock Exchange
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