REG - Sirius Real Estate - Corporate Bond raising EUR 350 million

Sirius Real EstateAnnouncement

16/01/2025 07:00

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RNS Number : 5015T  Sirius Real Estate Limited  16 January 2025

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

16 January 2025

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE
UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA OR IN ANY OTHER
JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL

Sirius Real Estate Limited

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

 

Sirius Real Estate issues Corporate Bond raising EUR 350 million

 

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., is pleased to announce that it has raised €350 million
in a senior unsecured corporate bond issuance (the "Bond").

 

The Bond, which matures in 2032, carries a coupon of 4% and is expected to be
rated BBB by Fitch. Following on from successful bond and equity financings
during 2024, the €350 million bond issuance was approximately five times
oversubscribed, underlining clear support from investors for the Company and
its strategy.

 

The new bond will increase Sirius' weighted average debt maturity to 4.2 years
from 3.5 years at 30 September 2024 with the Company's total average cost of
debt rising accordingly to 2.6% (2.1% at 30 September 2024).

 

The proceeds of the issue will be principally used to refinance existing
indebtedness, including in due course and in part the EUR 400 million June
2026 bond, as well as for general corporate purposes, including a significant
pipeline of potential acquisitions in Germany and the U.K.

 

The Bond is governed by German law and will be listed on the Euro MTF Market
of the Luxembourg Stock Exchange.

 

Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the
transaction, with Lazard acting as financial adviser.

 

Chris Bowman, Chief Financial Officer of Sirius, commented: "We appreciate the
strong support that we have received from institutional investors for this
€350 million bond issue which provides valuable, long-duration liquidity to
enable us to continue executing our value-add growth plan.  We remain well
within our net LTV guidance of 40% or below. The strength of Sirius'
investment case and capital markets access demonstrates investor confidence in
our ability to generate strong income returns and our longer-term growth
strategy."

 

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

+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
(http://www.sirius-real-estate.com/)

 

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
(https://www.linkedin.com/company/siriusrealestate/)

 

Follow us on X (Twitter) at @SiriusRE

 

JSE Sponsor

PSG Capital

 

Disclaimer

This publication does not constitute an offer to sell or the solicitation of
an offer to purchase any securities. Neither this publication nor anything
contained herein shall form the basis of, or be relied upon in connection
with, any offer or commitment whatsoever in any jurisdiction.

This publication does not constitute an offer to sell or a solicitation of an
offer to purchase any securities in the United States. Any securities
referred to herein have not been and will not be registered under
the U.S. Securities Act of 1933, as amended (the "Securities Act"), or the
laws of any state within the U.S., and may not be offered or sold in the
United States absent registration or an applicable exemption from
registration or in a transaction not subject to the registration requirements
of the Securities Act. There will be no offering of the bonds in the United
States. The bonds are being offered and sold outside the United States only
in reliance on Regulation S under the Securities Act of 1933, as amended (the
"Securities Act").

This publication is only being distributed to, and is only directed at persons
that are, outside the United Kingdom or, if within the United Kingdom, to
(i) persons who have professional experience in matters relating to
investments falling within Article 19(5) of the Financial Services and Markets
Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial
Promotion Order"), or (ii) persons falling within Article 49(2)(a) to (d)
("high net worth companies, "unincorporated associations", etc.) of the
Financial Promotion Order, or (iii) persons to whom an invitation or
inducement to engage in investment activity (within the meaning of section 21
of the Financial Services and Markets Act 2000 ("FSMA")) in connection with
the issue or sale of the bonds may otherwise lawfully be communicated or
caused to be communicated (all such persons together being referred to as
"relevant persons"). The bonds are only available to, and any invitation,
offer or agreement to subscribe, purchase or otherwise acquire such bonds will
be engaged in only with, relevant persons. Any person who is not a relevant
person should not act or rely on this announcement or any of its contents. The
bonds are not being offered to the public in the United Kingdom. As a
consequence, no key information document required by Regulation (EU) 1286/2014
as it forms part of domestic law by virtue of the EUWA (the "UK PRIIPs
Regulation") for offering or selling the bonds or otherwise making them
available to retail investors in the UK has been prepared and therefore
offering or selling the bonds or otherwise making them available to any retail
investor in the UK may be unlawful under the UK PRIIPs Regulation.

The securities referred to herein are not intended to be offered, sold or
otherwise made available to and should not be offered, sold or otherwise made
available to any retail investor in the European Economic Area (the "EEA").
For these purposes, a retail investor means a person who is one (or more) of:
(i) a retail client as defined in point (11) of Article 4(1) of Directive (EU)
2014/65 (as amended, "MiFID II"); (ii) a customer within the meaning of
Directive (EU) 2016/97 as amended, where that customer would not qualify as a
professional client as defined in point (10) of Article 4(1) of MiFID II or
(iii) not a qualified investor as defined in Regulation (EU) 2017/1129 of the
European Parliament and of the Council of June 14, 2017 (as amended, the
"Prospectus Regulation"). Consequently, no key information document required
by Regulation (EU) 1286/2014 (as amended or superseded, the "PRIIPs
Regulation") for offering or selling the bonds or otherwise making them
available to retail investors in the EEA has been prepared and therefore
offering or selling the bonds or otherwise making them available to any retail
investor in the EEA may be unlawful under the PRIIPs Regulation.

Lazard & Co., Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting exclusively as financial
adviser to Sirius and no one else in connection with the bond issue and will
not be responsible to anyone other than Sirius for providing the protections
afforded to clients of Lazard & Co., Limited nor for providing advice in
relation to the bond issue or any other matters referred to in this
announcement. Neither Lazard & Co., Limited nor any of its affiliates owes
or accepts any duty, liability or responsibility whatsoever (whether direct or
indirect, whether in contract, in tort, under statute or otherwise) to any
person who is not a client of Lazard & Co., Limited in connection with
this announcement, any statement contained herein or otherwise.

 

 

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