Sirius Real Estate secures new bank funding

Sirius Real Estate continues to reduce the average cost of its borrowings. It has confirmed it has completed a new 7 year EUR70 million banking facility with BerlinHyp with an all-in fixed interest rate of 1.48% for the term of the loan. This replaces an existing EUR39.3 million facility which was incurring an all-in fixed interest of 2.73%. This has further reduced the fund’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 EUR10 million of equity remaining from the June 2016 equity raise, which it is intending to use to acquire further assets.

Sirius Real Estate has also announced that it has completed its acquisition of a business park in Wiesbaden. They paid EUR17.7 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 EUR1.88 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 they say the business park offers primarily good quality office space which in particular fits Sirius’s flexible multi-tenanted workspace strategy.

SRE : Sirius Real Estate secures new bank funding

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