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January 16 2025 14:45

Chris Bowman

JSE-listed Sirius Real Estate has raised €350m in a senior unsecured corporate bond issue, approximately five times oversubscribed. Sirius which has been listed on the JSE for more than a decade, invests in German and UK business parks and storage businesses.

Sirius is a currency hedge for South African investors as it pays its dividends in Euro. The group has been a disappointing investment in recent years because of a weakening German economy and concerns about the war in Ukraine affecting western Europe.

The bond, maturing in 2032 and carrying a coupon of 4%, is expected to be rated BBB by Fitch and will increase Sirius’ weighted average debt maturity to 4.2 years from 3.5 years at 30th September 2024 with the group’s total average cost of debt rising accordingly to 2.6% compared with 2.1% at September 30 2024.

The proceeds will be used to refinance existing debt including and in part the €400m June 2026 bond and a significant pipeline of potential acquisitions in Germany and the UK.

“We appreciate the strong support that we have received from institutional investors for this €350 million bond issue which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan. We remain well within our net LTV guidance of 40% or below. The strength of Sirius’ investment case and capital Markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy,” said CFO of Sirius, Chris Bowman.

alistair@propertyflash.co.za

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