(Alliance News) - Sirius Real Estate Ltd said Thursday it has issued a EUR50 million unsecured Schuldschein loan offering, already subscribed to by a number of German and international investors.
A schuldschein is a privately placed, medium to long-term debt obligation that comprises a loan agreement and certificate of indebtedness.
The loan offers a blended interest rate of 1.6%, and an average maturity of 3.7 years. The loan is structured in tranches, with maturities of three and five years, with the interest rate made up of both fixed ad floating rates.
HSBC and Bayerische Landesbank acted as joint arrangers for the loan issue.
Funds raises from the issue will go towards Sirius's corporate purposes, including the acquisition of new assets and further investments into Titanium, the business park operator's joint venture with AXA IM - Real Assets.
Sirius said the loan issue is in line with its financing strategy, and that investing the proceeds into the group's acquisition pipeline will be accretive to earnings and also provide flexibility for further asset recycling.
"Innovation, flexibility and diversity are some of the foundations of our financing strategy and we are very pleased to have achieved that with our inaugural unsecured Schuldschein issuance, a first by a UK listed real estate business," said Chief Executive Officer Andrew Coombs.
Shares in Sirius Real Estate were down 2.6% at 82.10 pence on Thursday in London, while its Johannesburg shares were 0.6% lower at ZAR16.20.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Sirius Real Estate (SRE)