Sirius Real Estate is the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K. Picture: Supplied
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has raised €350 million (approximately 6.7 billion) in a senior unsecured corporate bond issuance.
The Bond, which matures in 2032, carries a coupon of 4% and is expected to be rated BBB by Fitch.
Following on from successful bond and equity financings during 2024, the €350m bond issuance was approximately five times oversubscribed, underlining clear support from investors for the company and its strategy.
With this new bond, Sirius aims to enhance its financial flexibility, increasing its weighted average debt maturity from 3.5 years to an impressive 4.2 years as of 30 September 2024. The company’s total average cost of debt is expected to rise modestly to 2.6%, up from 2.1% previously.
The funds derived from this issuance will principally be allocated towards refinancing existing debt obligations, including a significant €400 million bond maturing in June 2026. Additionally, Sirius plans to utilise a portion of the raised capital for general corporate purposes, which includes tapping into a promising pipeline of potential acquisitions in both Germany and the U.K.
The bond issuance is governed by German law and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange, positioning Sirius favourably within the European investment landscape. Deutsche Bank, HSBC, and Morgan Stanley served as joint bookrunners on the transaction, with Lazard providing financial advisory services.
Chris Bowman, chief financial officer of Sirius, expressed gratitude for the overwhelming support from institutional investors.
“We appreciate the strong support that we have received from institutional investors for this €350 million bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan. We remain well within our net LTV guidance of 40% or below,” Bowman said.
“The strength of Sirius' investment case and capital markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy.”
BUSINESS REPORT