7th Sep 2015 08:58
LONDON (Alliance News) - Sirius Real Estate Ltd Monday said that three of the five mixed-use business parks it is acquiring have now completed and that the two remaining assets are notarised and expected to complete in October.
Sirius, which operates branded business parks in Germany, said that the October completion date is two months ahead of schedule for the asset in Cologne. The other asset scheduled to complete in October is in Aachen.
The five business parks are being purchased for EUR57.2 million in total and are anticipated to contribute EUR5.3 million of annual rental income, providing EUR4.6 million of net operating income. The purchases will partly be funded by a five-year debt facility.
Sirius added that it has agreed a new seven-year EUR59 million debt facility with SEB AG to refinance the two existing Macquarie debt facilities. The interest rate on the SEB AG debt facility has been fixed at 1.84% for the full seven-year term, lower than previously anticipated, and will reduce the annualised interest cost of the company by approximately EUR2.6 million, it said.
"We are pleased with the progress being made at Sirius so far this year. The acquisition of these five new sites coupled with the refinanced Macquarie debt at a fixed seven-year interest rate of 1.84% will have a significant impact on Sirius's profitability and funds from operations going forward. Across the wider portfolio, we are continuing to execute our other organic growth initiatives and look forward to providing further updates of our progress," Chief Executive Andrew Coombs said in a statement.
Shares in Sirius were trading up 0.6% at 0.503 pence Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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