Sirius Real Estate Limited
("Sirius" or "the Company")
New five year Loan Facility
Sirius Real Estate, the leading operator of branded business parks providing flexible workspace to the German SME market, is pleased to announce it has signed the refinancing of its existing BerlinHyp AG ("BerlinHyp") facility which was due to expire at the end of March 2014, with a new five year €115 million facility with BerlinHyp and Deutsche Pfandbriefbank AG.
The new facility will be secured against nine properties, valued as at 30 September 2013 at €212 million, and will expire on 31 March 2019. It will have a total interest rate of 3.69% of which 50% of the loan is fixed with a 5 year swap and 50% is floating with a cap at 4.5%. The facility will amortise at an average rate of 2.5 per cent. per annum over 5 years and is subject to a 1% arrangement fee.
The new facility also represents the completion of the Company's refinancing programme. The Group has completed four new debt facilities totalling €227 million in the last 15 months, with debt expiries ranging between January 2017 and August 2023. As a result, the weighted average expiry of the Group's bank facilities and outstanding secured bonds will increase to 5.5 years along with reducing the Group's loan to value to 54% (excluding cash resources and on the basis of the valuation as at 30 September 2013).
Andrew Coombs, CEO of Sirius Facilities commented, "We are very pleased to have agreed this new facility. We appreciate the continued support from BerlinHyp and welcome Deutsche Pfandbriefbank AG as an important new lender to the Company.
Critically, the refinancing allows the Company to focus on the value creation potential which exists within the business, knowing that the company has a long-term and stable financial base upon which it can grow. We have initially identified a series of highly accretive opportunities within the core portfolio, costing approximately €9m, which are being pursued through a new capex programme, and we have already embarked on just over €2.5m of that programme. Alongside this, the management team also believe there are opportunities to make earnings enhancing acquisitions within Sirius' specific market sector.
We look forward to continuing to transform Sirius during 2014."
Enquiries:
Sirius Real Estate
Andrew Coombs, CEO +49 (0)30 285010110
Alistair Marks, CFO
Peel Hunt
Capel Irwin +44 (0)20 7418 8900
Hugh Preston
Novella Communications
Tim Robertson +44 (0)20 3151 7008
Ben Heath
