Sirius set to raise equity as it buys portfolio in Germany
GERMANY-focused business park owner Sirius Real Estate is raising up to €20m by a private placement of new ordinary shares to fund various acquisitions. The company, which plans to move to the JSE’s main board later this year, is in the process of acquiring a property portfolio in Germany.The portfolio has all-in cost of up to €55.8m, of which €29.1m is in exclusivity, and €26.7m is under negotiation.The real estate firm’s portfolio is expected to be acquired with a net initial yield of 8.1%, and would contribute about €5.3m to annualised rental income and €4.5m to the company’s net operating income.Sirius is also planning to refinance an existing €39.6m facility that has an interest rate of 2.68%, and a 3.5-year remaining term, with a new €77m seven-year bank facility with an expected fixed interest rate of about 1.6% with the same financial lender.The purchase of the acquisition portfolio will be met in part by the net funds raised from the private placement, and the balance will ...
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