subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now
Sirius Real Estate-owned storage asset Heiligenhaus in Germany. Picture: SUPPLIED
Sirius Real Estate-owned storage asset Heiligenhaus in Germany. Picture: SUPPLIED

Sirius Real Estate, the owner and operator of branded business and industrial parks in Germany and the UK, has raised £150m that will be used for it pipeline of acquisition opportunities.

The share placing comprises the issue of 159.6-million new shares, which raised gross proceeds of £150m, it said in a statement on Thursday.

The offer shares represent about 11.8% of the existing issued ordinary share capital of the company before the capital raising.

The offer price of 94p represents a discount of about 3.5% to the closing share price of 97.4p on July 10 and a discount of about 2.1% to the volume weighted average price on the JSE over the 30 trading days before that date, of 96.05p.

“The success of this capital raise is a strong endorsement of our ambitious growth strategy and operational track record, having recently announced our tenth year of both annualised rental growth above 5% and dividend increases,” said CEO Andrew Coombs.

“That we have been able to raise further capital so soon after both our equity raise in November, from which all proceeds have now been successfully invested, and our €60m bond tap in May, demonstrates the continued appeal among investors of our strategy, platform and carefully assembled portfolio,” he said.

“We now look forward to investing the proceeds into our identified pipeline of attractive acquisition opportunities across both Germany and the UK and to utilising our operating platform to add value to these assets, while contributing to growing annual FFO (funds from operations) to our €150m per annum medium-term target.”

In June the company completed the acquisitions of two industrial assets in the UK. The acquisitions — in Banbury, southeast England, and Wembley — were bought for just over £31m and added about 46,000m2 of light industrial space to the UK portfolio. The acquisitions were made using the proceeds of the Maintal disposal, which was sold for €40.1m in March.

mackenziej@arena.africa 

Companies in this Story

subscribe Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Subscribe now

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.