Sirius refinances Saarbrücken business park

Sirius Real Estate, the owner and operator of branded business and industrial parks in Germany and the UK, has secured a new debt package at its Saarbrücken business park in southwest Germany.

Earlier this month Sirius raised €350m through a senior unsecured corporate bond issuance, maturing in 2032 and carrying a 4% coupon. The issuance was about five times oversubscribed.

Sirius had agreed a €13m, five-year loan at 3.264% with Sparkasse Saarbrücken bank, which refinanced its asset in Saarbrücken, it said in a statement on Thursday.

The Sirius Office Center Saarbrücken is a well-located 47,000m² edge-of-town business park comprising primarily offices, a modern conference centre and light industrial and production space.

Saarbrücken is the state capital of Saarland near the border with France and is a major industrial and transport centre.

By September 2024, the Saarbrücken site had an occupancy of 78% and was producing a net operating income of €2.9m, reflecting a 20% improvement since it was acquired in 2018.

“While de minimis in comparison to the oversubscribed €350m bond we issued earlier this month, the refinancing of our Saarbrücken business park is nonetheless important in that it demonstrates our continued ability to refinance our assets, as well as the company, at favourable rates and it highlights the attractiveness of the European lending market that is available to Sirius,” said CFO Chris Bowman.

In December, Sirius completed the acquisition of a development site in Munich, immediately adjacent to its Munich-Neuaubing business park, for €13.3m.

The acquisition allowed the company to secure the final corner of a well-located 130,000m² estate in the Bavarian capital.

In November, the group reported a 14.5% increase in funds from operations, while it has made acquisitions worth €141.5m in the six months to end-September.

mackenziej@arena.africa