Sirius Real Estate taps bond market for another EUR300mln to fund expansion

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Sirius Real Estate Ltd (LSE:SRE, JSE:SRE) has drummed up EUR300mln by issuing bonds to partially finance its recent expansion into the UK market.


The business and industrial parks landlord completed its second debt issuance of the past six months, with the new senior debt issued with a maturity of 2028 and a coupon of 1.75%, following the EUR400mln inaugural issuance in June.


Sirius said the latest issue saw a “solid oversubscription, underlining the support from both equity and debt investors for the company and its business model”.


It said part of the proceeds to help finance the recent acquisition of UK-based BizSpace Group, namely to go towards repaying BizSpace’s existing secured debt facilities.


The rest will go towards topping up the group’s cash resources “to be used to execute further acquisitions from the company’s significant pipeline of potential opportunities”.


Chief financial officer Alistair Marks said the new issuance would lock in continued low rates, particularly given the recent volatility in the debt markets, with Sirius’s weighted average debt expiry now 4.7 years at an average cost of debt of 1.36%.


“The level of interest we received for our second bond, coupled with our successful equity raise last week, is testament to the confidence that investors have in our ability to generate strong income returns and our broader strategy for growth,” he added.

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