2nd Oct 2019 07:47
(Alliance News) - Sirius Real Estate Ltd said Wednesday it has continued to trade in line with expectations for its financial year, even as its interim rent roll declined year-on-year.
As at September 30, the Germany-focused business parks operator reported an annualised rent roll of EUR78.5 million, down 4.2% from EUR82.0 million the same date the year before, but up 2.6% from EUR76.5 million as at April 1.
Like-for-like annualised rent roll rose by 0.9% to EUR77.2 million over the six-month period, driven by a like-for-like rental rate increase in the region by 1.6% to EUR5.92 per square feet from EUR5.83, while like-for-like occupancy remained flat at 85%.
In addition to letting activity, Sirius said it has completed its Titanium joint venture with AXA Investment Managers - Real Assets in July, through the sale of 65% of its interest in five business parks. This generated net proceeds for Sirius in excess of EUR70 million.
In addition, Sirius said it has agreed to an extension of its existing facility with real estate and mortgage bank BerlinHyp, increasing the facility to EUR180.2 million from EUR64.8 million.
The new facility expires on October 31, 2023, has an all-in fixed rate of 0.9% and requires amortisation payments of 1.3% per year. As part of the extension, Sirius's Nabern-Kirchheim asset will be added to the security portfolio.
Including the repayment of of a K-Bonds facility, Sirius will have EUR90 million in surplus funds from the facility, and adding to sales proceeds from the prior year, has EUR170 million for investment into new assets.
"It has been another encouraging six months for Sirius, during which we have completed the Titanium joint venture transaction with AXA, secured a new debt package at a historic low fixed interest rate for the company of 0.9% and made considerable progress on identifying and securing earnings enhancing acquisitions," said Chief Executive Officer Andrew Coombs.
Sirius Real Estate will publish its interim results on November 25.
By Dayo Laniyan; [email protected]
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