Business
Sirius completes debut Schuldschein issuance
Sirius completes debut Schuldschein issuance.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \n \n RNS Number : 0376F\n Sirius Real Estate Limited\n 05 March 2020\n \n \n \n \n 5 March 2020 \n Sirius Real Estate Limited\n (\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n Sirius completes debut Schuldschein issuance\n Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, today announces that Sirius has issued a €50 million unsecured Schuldschein loan offering a blended interest rate of 1.60%, with an average maturity of 3.7 years.\n \n This debt instrument is the Company's first unsecured loan facility and was subscribed to by a selected number of German and international investors.\n \n Funds raised from the issuance will be used for general corporate purposes including the acquisition of unencumbered assets and further investment into Titanium, Sirius' joint venture with AXA IM - Real Assets.\n \n The Schuldschein loan was structured in tranches with maturities of three and five years and a blended all-in interest rate of 1.6% made up of both fixed and floating rates, and no amortisation. \n \n The issuance is in line with Sirius' financing strategy and the Company remains committed to keeping its net LTV ratio below 40% whilst continuing to grow its asset base, cash flows and earnings. Investing these proceeds into the Company's acquisition pipeline is not only accretive to earnings, but as the assets will be acquired on an unencumbered basis, will also provide Sirius with much more flexibility for further asset recycling as well as improving the Company's risk profile. Unsecured corporate debt also allows the Company to act more swiftly and flexibly in executing its acquisition strategy.\n \n HSBC and Bayerische Landesbank were joint arrangers of the issuance.\n \n Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: \"Innovation, flexibility and diversity are some of the foundations of our financing strategy and we are very pleased to have achieved that with our inaugural unsecured Schuldschein issuance, a first by a UK listed real estate business.\"\n \n For further information:\n Sirius Real Estate\n Andrew Coombs, CEO/Alistair Marks, CFO\n \n Tel: +49 (0)30 285010110\n \n Tavistock (Financial PR)\n Jeremy Carey/James Verstringhe\n \n Tel: +44 (...