LONDON (Alliance News) - Sirius Real Estate Ltd on Monday said it has raised EUR30.0 million in a private placement, EUR10.0 million higher than previously anticipated, after noting that the book for both its private placing and secondary placing was "significantly oversubscribed".
Sirius Real Estate on Friday said it had completed a private placement and secondary placement, and its book was to clear at EUR0.53. The company said, between the private placing and secondary placing, 66.2 million shares had been available for subscription or acquisition, and it received bids for 169.4 million shares.
Shares in Sirius Real Estate were up 0.3% at EUR0.529 on Monday afternoon.
This came after an announcement from Sirius Real Estate on Thursday that it was proposing a private placement of shares to raise up to EUR20.0 million, with funds to be used for further acquisitions and a refinancing of its banking facility.
Sirius had also noted that PSG Capital also has been appointed by Clearance Capital Ltd to sell 27.0 million shares in Sirius, including those held by fixed-term real estate securities fund Karoo Investment Fund SCA. Karoo has a scheduled termination date of July 31, and held a 17.9% stake in Sirius on December 31.
In light of the heightened interest, Sirius Real Estate on Monday said it was increasing the number of shares to be placed under the private placement to 56.6 million, raising gross proceeds of EUR30.0 million. These shares represent in total around 7.5% of Sirius Real Estate's issued share capital prior to the placement, the company said.
As such, 83.6 million shares were available for subscription or purchase in the private placement and secondary placement.
Both Chief Executive Officer Andrew Coombs and Chief Financial Officer Alistair Marks submitted bids for shares under the private placement.
As part of the private placing, Coombs is to acquire 16,468 shares at EUR0.53 per share on June 21, taking his total shareholding to 0.53% of issued share capital, or 4.3 million shares. Marks is to acquire 12,092 shares in Sirius Real Estate at EUR0.53, meaning he will then hold a 0.28% stake or 2.3 million shares.
Sirius Real Estate said the EUR30.0 million raised will support the acquisition of a new portfolio of three business parks and the refinancing of an existing EUR39.6 million facility currently with an interest rate of 2.68% and a three and a half-year remaining term, with a new EUR77.0 million seven-year bank facility with an expected fixed interest rate of around 1.6% with the same unnamed lender.
The acquisition of the three business parks is expected to generate an internal rate of return over five years of more than 15%, Sirius Real Estate said, adding that it has identified further acquisition opportunities which it will now also pursue with the increased private placement proceeds.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Sirius Real Estate (SRE)