(Alliance News) - Sirius Real Estate Ltd on Monday announced the completion of its acquisition of Helix Investments Ltd - which owns - which holds flexible workspace provider BizSpace Group - for GBP245 million, based on an enterprise value of GBP380 million.
The Germany-focused business park operator said the acquisition will provide it with an opportunity to enter an under-served new market in the UK, through the ownership of an established platform.
The acquisition was financed through Sirius Real Estate's existing cash resources, and the issuing of new shares on the London and Johannesburg Stock Exchanges, which raised GBP137 million.
"The completion of this acquisition marks a significant step forward in the continued evolution and growth of Sirius as a business. It provides us with our first expansion into a new geography via the acquisition of a significant portfolio of assets and an established operating platform, both of which we believe have huge potential. The success of our capital raise was also a very positive endorsement both of this transaction and our wider strategy for growth," said Chief Executive Officer Andrew Coombs.
In addition, Sirius has assumed BizSpace's existing debt of GBP146 million.
Earlier Monday, Sirius had mandated Deutsche Bank, HSBC and Morgan Stanley as bookrunners to set up investor calls, which could lead to the issue of the EUR300 million fixed rate, senior unsecured seven-year bond mandate.
Proceeds from the potential bond issue will go towards partly fund the acquisition of BizSpace, refinance existing debt and general corporate purposes.
Shares in Sirius Real Estate were up 1.5% at 143.48 pence on Monday in London, while its Johannesburg shares closed 0.7% higher at ZAR29.21.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Sirius Real Estate (SRE)