8th Nov 2021 09:18
(Alliance News) - Sirius Real Estate Ltd on Monday reported a stronger interim performance, with a double digit rise in profit through gains from property revaluations and growth in revenue.
Also on Monday, the Germany-focused operator of business parks, offices and industrial complexes said it has agreed to acquire Helix Investments Ltd - which holds flexible workspace provider BizSpace Group - for GBP245 million, based on an enterprise value of GBP380 million.
The acquisition will be funded through the group's existing cash resources, an EUR75 million revolving credit facility and proceeds from a capital raise.
To partly fund the deal, Sirius will seek to raise around GBP135 million through a UK placing, a placing in South Africa and a retail offer via PrimaryBid. In the placing, Sirius will look to issue no more than 105.3 million shares, reflecting 10% of the company's issued share capital.
The price per share will be determined at the end of the bookbuild process, and will be announced by Sirius itself. Joh Berenberg, Gossler & Co JG, HSBC Bank, Panmure Gordon UK and Peel Hunt LLP are acting as global coordinators and bookrunners.
The acquisition is expected to provide the group with a high-quality portfolio in a market with supply constraints and organic growth potential in rental pricing.
"The acquisition of BizSpace brings with it an experienced and enthusiastic management team that we believe will be a good fit with the culture of Sirius' current management team and I look forward to building on the existing relationships between our businesses. The transaction provides an opportunity to enter a new geography at scale and extends our successful strategy to target highly strategic locations and assets in order to generate sustainable and growing returns on behalf of investors," said Chief Executive Officer Andrew Coombs.
Shares in Sirius Real Estate were down 3.3% at 133.40 pence on Monday in London, while its Johannesburg shares were 4.5% lower at ZAR26.94.
For the six months ended September 30, the group posted pretax profit at EUR78.2 million, up 26% from EUR62.2 million a year prior, partly through a higher gain on the value of investment properties at EUR49.5 million from EUR31.9 million.
In addition, revenue grew 11% year-on-year to EUR88.4 million from ER79.3 million, driven by a rise in rental and service income from both managed and investment properties.
As at September 30, net asset value per share increased 14% to 92.62 euro cents from 81.18 cents the same date a year before and 4.9% from 88.31 cents at the end of March.
Meanwhile, Sirius Real Estate's portfolio value increased 16% to EUR1.43 billion from EUR1.23 billion the same date a year prior, and 5.9% from EUR1.35 billion at the end of March.
Sirius declared a dividend of 2.04 euro cents per share, up 12% from 1.82 cents a year prior.
Looking ahead, Sirius said it is on-track to trade in line with expectations for the full year.
Finally, the group has appointed Joanne Kenrick as non-executive director.
By Dayo Laniyan; [email protected]
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