Sirius Real Estate To Raise GBP35 Million In Placing For Acquisition (ALLISS)

20th Mar 2018 09:47

LONDON (Alliance News) - Sirius Real Estate Ltd said on Tuesday it intends to raise GBP35.0 million through a placing of shares in order to acquire a portfolio of assets.

Shares in the Germany-focused business park operator were down 9.3% at 62.20 pence on Tuesday.

The number of shares to be placed and the issue price will be agreed on at the end of the bookbuild. If all share are placed, however, it is expected to represent 6.0% of Sirius's existing share capital.

Proceeds will go towards the acquisition of a portfolio of five assets, which could be acquired for EUR77.0 million. At that price, the portfolio has a net initial yield of 7.3% and a 17% vacancy which is related to three assets in the portfolio.

The placing will be conducted through an accelerated bookbuild to investors. Berenberg, Peel Hunt and PSG Capital are acting as joint bookrunners.

In addition, Sirius Real Estate said it is trading in line with market expectations for the year to the end of March.

"The portfolio assets offer an attractive combination of a stable income stream together with excellent scope to create additional value and will fit well within our existing portfolio. We are therefore pleased to be putting forward this opportunity to shareholders in the confidence that it will support an increase in the total returns Sirius can generate," said Chief Executive Andrew Coombs.

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