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Sirius Real Estate Issues €59.9m New Notes to Fuel Growth Strategy | Rateweb
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Sirius Real Estate Issues €59.9m New Notes to Fuel Growth Strategy

Sirius Real Estate Limited recently announced the issuance of €59.9 million in new notes. This strategic move aims to support the company’s expansion plans and enhance its financial position.

Issuance Overview

Sirius Real Estate issued the new notes as a tap issuance to its existing €300 million 1.75% bonds due November 2028. The new notes were priced in line with current market levels and represent a 19.9% tap of the 11/2021 Notes.

Purpose of the Issuance

The proceeds from the issuance will primarily be used for the company’s significant pipeline of potential acquisitions in Germany and the UK, in addition to general corporate purposes. This aligns with Sirius Real Estate’s focus on value-add growth and strategic investments.

Investor Support and Demand

The issuance received support from a single existing international institutional investor, showcasing confidence in Sirius Real Estate’s long-term strategy and market appeal. This follows strong demand for the company’s previous bond issuances and equity raises, highlighting investor trust and interest.

Financial Impact and Net LTV Guidance

Despite the issuance, Sirius Real Estate maintains its net loan-to-value (LTV) ratio within the guidance of 40% or below. This prudent financial management ensures stability and sustainability amid growth initiatives.

Comments from Sirius Real Estate CFO

Chris Bowman, the Chief Financial Officer of Sirius Real Estate, emphasized the success of the issuance in complementing the company’s equity raises and overall strategy. The funds will support value-add growth while maintaining financial discipline.

Key Figures and Portfolio

As of September 2023, Sirius Real Estate’s portfolio comprises 139 assets with over €2 billion in book value, generating an annualized rent roll of €184.2 million. This extensive portfolio underscores the company’s position as a leading owner and operator of business and industrial parks.

Strategic Approach and Business Model

Sirius Real Estate’s strategy revolves around acquiring business parks at attractive yields, integrating them into its network, and optimizing their value through intensive asset management. This approach is focused on generating attractive returns for shareholders through rental income growth and capital value appreciation.

Partnership with AXA IM Alts

The company also holds a 35% stake in Titanium, a German-focused joint venture with clients of AXA IM Alts. This partnership enhances Sirius Real Estate’s market presence and diversification efforts.

Conclusion

Sirius Real Estate’s issuance of €59.9 million new notes marks a strategic move to fuel its growth and investment plans in Germany and the UK. With a strong portfolio, investor support, and prudent financial management, the company remains well-positioned for continued success in the real estate market.

Table: Key Financial Figures

MetricValue
Portfolio Book ValueOver €2 billion
Annualized Rent Roll€184.2 million
Net Loan-to-Value (LTV)Below 40%
Issued New Notes€59.9 million
Existing Bonds€300 million