REG - Sirius Real Estate - Issuance of second Corporate Bond raising EUR 300m

Sirius Real EstateAnnouncement

18/11/2021 13:15

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RNS Number : 8566S  Sirius Real Estate Limited  18 November 2021

 

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: ISIN GG00B1W3VF54

18 November 2021

NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE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

Sirius Real Estate Limited

("Sirius" or the "Company")

Sirius Real Estate issues second Corporate Bond raising EUR 300 million

Sirius Real Estate, a leading operator of branded business and industrial
parks providing conventional space and flexible workspace in Germany and the
UK, is pleased to announce that it has raised €300 million in a second
senior unsecured corporate bond issuance (the "Bond"), following the Company's
€400 million inaugural bond issuance in June.

The Bond, which matures at the end of 2028, carries a coupon of 1.75% and is
expected to be rated BBB by Fitch. The higher coupon over the June issuance
reflects the longer maturity date. Following on from last week's successful
equity raise, the €300 million bond issuance attracted a solid
oversubscription, underlining the support from both equity and debt investors
for the Company and its business model.  The new facility will increase
Sirius' weighted average debt expiry to 4.7 years from 3.7 years at 30
September 2021 with the Company's total average cost of debt rising
accordingly slightly to 1.36% (1.2% at 30 September 2021).

Sirius will use part of the proceeds to partially finance the Company's recent
expansion into the UK market through its acquisition of the BizSpace Group,
which it purchased based on an enterprise value of £380 million. This will
include repaying the existing secured debt facilities within BizSpace as well
as replenishing the Company's cash resources to be used to execute further
acquisitions from the Company's significant pipeline of potential
opportunities.

The bonds are 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.

Alistair Marks, Chief Financial Officer of Sirius, commented: "After the
success of our inaugural €400 million corporate bond in June, it is very
pleasing to issue a further €300 million of notes, locking in continued low
rates, to help fund our recent acquisition of BizSpace, particularly given the
recent volatility in the debt markets. Furthermore, the level of interest we
received for our second bond, coupled with our successful equity raise last
week, is testament to the confidence that investors have in our ability to
generate strong income returns and our broader strategy for growth."

ENDS

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Alistair Marks, CFO

+49 (0) 30 285010110

 

FTI Consulting (Financial PR)

Richard Sunderland / Claire Turvey / James McEwan / Talia Jessener

+44 (0) 20 3727 1000

SiriusRealEstate@fticonsulting.com

 

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the main market and premium segment of
the London Stock Exchange and the main board of the JSE Limited.  It is a
leading operator of branded business parks providing conventional space and
flexible workspace in Germany. The Company's purpose is to create and manage
optimal workspaces that empower small and medium-sized businesses to grow,
evolve and thrive. Sirius seeks to unlock the potential of its people, its
properties, and the communities in which it operates, so that together we can
create sustainable impact, and long-term financial and social value.

 

The Company's core strategy is the acquisition of business parks at attractive
yields, the integration of these business parks into its network of sites
under the Company's own name as well as offering a range of branded products
within those sites, and the reconfiguration and upgrade of existing and vacant
space to appeal to the local market, through intensive asset management and
investment. The Company's strategy aims to deliver attractive returns for
shareholders by increasing rental income and improving cost recoveries and
capital values, as well as by enhancing those returns through financing its
assets on favourable terms. Once sites are mature and net income and values
have been optimised, the Company may take the opportunity to refinance the
sites to release capital for investment in new sites or consider the disposal
of sites in order to recycle equity into assets which present greater
opportunity for the asset management skills of the Company's team.

 

Sirius also has a venture with clients represented by AXA IM Alts. Titanium
was formed through the acquisition by AXA IM Alts, on behalf of its clients,
from Sirius, of a 65% stake in five business parks across Germany. Sirius
retained the remaining 35%. The venture seeks to grow primarily through the
acquisition of larger stabilised business park assets and portfolios of assets
with strong tenant profiles and occupancy. As well as its equity interest,
Sirius acts as operator of the assets in the venture, on a fee basis. Sirius
will continue to grow its wholly owned portfolio through acquisitions of more
opportunistic assets, where it can capitalise on its asset management
expertise to maximise utilisation of the space, grow occupancy and improve
quality of the tenants. The strategies have been clearly defined so that the
venture does not conflict with Sirius's existing business.

 

In November 2021, Sirius Real Estate announced and completed the acquisition
of BizSpace, a leading provider of regional flexible workspace in the UK.
BizSpace offers light industrial, workshop, studio and out of town office
units to a wide range of businesses across the UK and the acquisition
therefore provided Sirius with a unique opportunity to enter with immediate
scale an under-served new market through a one-step acquisition of an
established platform. It provides Sirius with a high-quality portfolio,
offering significant organic growth potential in rental pricing in a UK market
characterised by supply constraints. The BizSpace business is also highly
complementary to Sirius' existing platform, allowing for meaningful
operational and financial synergies to drive value creation for Sirius
shareholders.

 

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 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.

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