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Sirius set for €20m equity raise

Sirius Real Estate, an operator of branded business parks providing conventional and flexible workspace to the German market, has announced the proposed raising of up to €20m by a private placement of new ordinary shares to fund:
By James Buckley
June 9, 2016 | 2:56 P.M.
  • Further acquisitions with an all-in cost of up to 55.8m of which 29.1m is in exclusivity and 26.7m is under negotiation. The acquisition portfolio is expected to be acquired with an EPRA net initial yield of 8.1% and would contribute approximately 5.3m to annualised rental income and 4.5m to net operating income. 
  • The refinancing of an existing 39.6m facility currently with an interest rate of 2.68% and a 3.5-year remaining term, with a new 77m 7-year bank facility with an expected fixed interest rate of around 1.6% with the same lender. 
  • The purchase of the acquisition portfolio will be met in part by the net funds raised from the private placement and the balance will be funded by the proposed new banking facility currently under negotiation.
  • The acquisition portfolio is expected to increase the company's annualised rental income to in excess of 68m and the whole transaction is expected to be approximately 7.6% accretive to the annual dividend per share when all transactions are completed, whilst only being very marginally dilutive to Adjusted NAV per share. Overall the acquisition portfolio is expected to generate an IRR over 5 years of more than 15%.
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