Business
Proposed Private Placement and Acquisition
Proposed Private Placement and Acquisition.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 7049A Sirius Real Estate Limited 09 June 2016 \n\nTHIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OR TO US PERSONS, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.\n \n \n09 June 2016\n \nSirius Real Estate Limited\n(\"Sirius Real Estate\" or the \"Company\")\n \nPrivate Placement Raising of up to €20 million to be used for Further Acquisitions and Refinancing and Secondary Placement of up to 27 million shares\n \n \nSirius Real Estate, the leading operator of branded business parks providing conventional and flexible workspace to the German market, is pleased to announce the proposed raising of up to €20 million by a private placement (\"Private Placement\") of new ordinary shares (\"Private Placement Shares\") to fund:\n \n· Further acquisitions with an all-in cost of up to €55.8 million (\"the Acquisition Portfolio\") of which €29.1 million is in exclusivity and €26.7 million is under negotiation. The Acquisition Portfolio is expected to be acquired with an EPRA net initial yield of 8.1% and would contribute approximately €5.3 million to annualised rental income and €4.5 million to net operating income. \n· The refinancing of an existing €39.6 million facility currently with an interest rate of 2.68% and a 3.5 year remaining term, with a new €77 million 7-year bank facility with an expected fixed interest rate of around 1.6% with the same lender. \n· 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. \n· The Acquisition Portfolio is expected to increase the Company's annualised rental income to in excess of €68 million 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%. \n \n&nb...