Sirius Real Estate, which owns and operates branded business and industrial parks in Germany and the UK, has secured a new €150m unsecured revolving credit facility, it said on Tuesday.
The facility, with an initial three-year term, has two one-year extension options and incorporates accordions, allowing it to be increased by up to an additional €100m.
It carries a margin of 120bps over short term Euribor, which is about 2% (leading to an interest cost of 3.2% if it were drawn down at existing rates), with covenants aligned where possible to the group’s most recent bond issue in January, it said.
The facility enhances Sirius’ financial flexibility, allowing the company to continue to take advantage of current market conditions and its strong acquisition pipeline in Germany and the UK, as well as managing cash balances efficiently as it passes through bond re-financing windows, it added.
Sirius CFO Chris Bowman said: “Along with our recent equity fundraise and bond issuance, this facility provides us with further flexibility to capitalise on our exciting pipeline of opportunities in Germany and the UK. It also further diversifies our debt by adding BNP Paribas and ABN AMRO to our current pool of relationship banks, and extends our relationship with HSBC, a bookrunner on all our bond issues to date.
“Furthermore, this new facility demonstrates the strong support we continue to receive from existing and new financing partners,” Bowman added.
Sirius said it continued to investigate the lower cost funding in the German financing market available to it from local banking partners in conjunction with asset acquisitions and will take advantage of opportunities to secure such funding where appropriate.
In January, Sirius raised €350m in a senior unsecured corporate bond issuance, which matures in 2032 and carries a coupon of 4%. This followed several successful bond and equity financings raised during 2024.
Earlier this month the group reported higher full-year earnings as its operating platform continued to drive rental and funds from operations growth. It highlighted increased defence spending in the UK and Germany as potential growth opportunities.
Sirius reported that after tax for the year ended March grew to €178.2m from €107.9m a year ago and a 6.3% rise in like-for like rent roll growth to €205.6m, driven by continued strong organic growth and occupier demand in Germany and the UK.
Funds from operations increased 11.8% to €123.2m and operating profit increased by 65.2% to €215.9m.
During the year, the group spent €270m on acquisitions and disposed of €46.3m of assets, at a premium to book value.
The group has completed several transactions so far this year, including the sale of a business park in Pfungstadt on the outskirts of Frankfurt, for €30m, the acquisition of a multi-tenanted business park in Mönchengladbach for €17.21m.
In February, Sirius bought the Earl Mill business park in Oldham in the UK for £5.7m, and a business park in Reinsberg in Saxony, Germany, for €20.4m. This was followed in March by the purchase of Chalcroft Business Park in Southampton and an adjoining piece of development land with outline planning permission for £40.5m.
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