Sirius Real Estate, which owns and operates branded business and industrial parks in Germany and the UK, has raised €350m in a senior unsecured corporate bond issuance.
The bond, which matures in 2032, carries a coupon of 4% and is expected to be rated BBB by Fitch, Sirius said in a statement on Thursday.
The group raised several successful bond and equity financings during 2024.
The latest bond was about five times oversubscribed, underlining clear support from investors for the company and its strategy, it said.
“We appreciate the strong support that we have received from institutional investors for this €350m bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan,” CFO Chris Bowman said.
“We remain well within our net loan to value (LTV) guidance of 40% or below,” he said.
The new bond will increase Sirius’ weighted average debt maturity to 4.2 years from 3.5 years at end-September 2024 with the company’s total average cost of debt rising accordingly to 2.6% from 2.1% at end-September.
The proceeds will be principally used to refinance existing indebtedness, including in due course and in part the €400m June 2026 bond, as well as for general corporate purposes, including a significant pipeline of potential acquisitions in Germany and the UK.
The bond will be listed on the Euro MTF Market of the Luxembourg Stock Exchange.
Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the transaction, with Lazard acting as financial adviser.
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, presenting it with a number of value-add and development options in the future.
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.
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