Issue of inaugural Corporate Bonds raising EUR350m

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SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (EUR) Share Code: ESRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: ISIN GG00B1W3VF54

16 June 2021

Sirius Real Estate Limited

("Sirius" or the "Company")

Sirius Real Estate issues inaugural Corporate Bonds raising EUR350 million

Sirius Real Estate, the leading operator of branded business and industrial parks providing conventional space and flexible workspace in Germany, is pleased to announce that it has successfully placed its inaugural corporate bonds on the following terms:

·    Issue of EUR 350 million bond

·    Senior bond expected to be rated BBB by Fitch with coupon of 1.125% issued

·    Five year term with maturity in 2026

·  Net proceeds to be used to refinance certain existing debt and for general corporate purposes (including the financing of future acquisitions)

Sirius has completed the successful issuance of corporate bonds raising a total of EUR 350 million. The order book for the bonds was significantly oversubscribed, reflecting the strong endorsement by the capital markets for the Company and its business model. The resulting annual interest rate for the bonds is 1.125 per cent.

The Company will use part of the proceeds to refinance certain existing secured debt facilities, with the remainder to be deployed towards the significant pipeline of potential acquisitions, as well as general corporate purposes.

The bonds are governed by German law and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange.

Alistair Marks, Chief Financial Officer of Sirius, commented: "The successful issue of our first corporate bonds, which was heavily oversubscribed, is proof of the attractiveness and sustainability of our business model. We were particularly pleased to be able to successfully place the bonds with important institutional investors and establish new capital and funding sources on very attractive terms. The market has given us the clear signal that our balanced financing strategy, comprising secured and unsecured financing, is well regarded. The process will help us to continue to execute our strategy of growth, taking advantage of the strong demand for our product."

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

[email protected] 

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.

For more information, please visit: www.sirius-real-estate.com 

Follow us on LinkedIn at 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.