Sign In
Last checked at 
2 Mar 2009 07:00
ο»Ώ
Β
Sirius Real EstateΒ Limited
("Sirius" or "theΒ Company")
AnnouncesΒ New β¬45 millionΒ BankingΒ Facility withΒ BerlinHyp
Sirius, the real estate company established to acquire large mixed-use commercial sites for upgrading to flexible workspaces inΒ Germany, is pleased to announce that itΒ has secured aΒ newΒ β¬45 million credit facility withΒ LandesbankΒ Berlin, the owner ofΒ BerlinHyp,Β secured against properties valued at β¬85Β million.Β This, together with existing cash reserves, will meanΒ theΒ CompanyΒ has approximately β¬70 million to fund itsΒ ongoingΒ programme of upgrading and developing the portfolioΒ as plannedΒ in order to drive rental growth and attract new tenants.
Once the new facility is fully drawn downΒ over the next 12 months,Β borrowingsΒ willΒ beΒ β¬322Β millionΒ whichΒ represents anΒ overallΒ loan to valueΒ ("LTV")Β ratioΒ ofΒ 62%Β based on the latest published valuation.Β BerlinHypΒ hasΒ agreed to combine theΒ new credit facility withΒ itsΒ twoΒ existingΒ facilities with Sirius, creatingΒ additionalΒ LTVΒ headroom for the new enlarged facilityΒ and in addition the Company has β¬55 million of uncharged assets.Β Β
Despite the wider economic challenges, demand for Sirius'sΒ affordable, good quality, flexible workspace remains strong, with a record number of enquiries recorded in January 2009.Β 26,798Β sqmΒ of new leasesΒ wereΒ signedΒ betweenΒ 1 OctoberΒ 2008Β and 13 February 2009Β at an average rate of β¬5.23Β per sqm, representing a significant uplift on theΒ 10,772Β sqm of space vacated in the same period, whichΒ was let out atΒ β¬3.50Β per sqm.Β OccupancyΒ isΒ nowΒ atΒ 77%, in line with management expectations.Β Sirius is continuing to invest in its asset management team in order to manage the opportunities and growth across the portfolio andΒ currentlyΒ employsΒ 127Β people.
Kevin Oppenheim, Chief Executive OfficerΒ of the Asset Manager said:Β "We are pleased to have secured theΒ new facility with BerlinHyp whichΒ places us in a strongerΒ financial position,Β allowing us to achieveΒ our medium term commercial objectives.Β We believe ourΒ productΒ is showing the advantages of being highly flexible and this, together with its affordability, is continuing to attractΒ significantΒ interest fromΒ the SME market inΒ Germany."
Following itsΒ 31 March 2009Β year end, the CompanyΒ willΒ issue a tradingΒ update.
Enquiries:
Principle CapitalΒ Sirius Real Estate Asset Management Limited
Kevin Oppenheim, CEO 07973 821 008
JPMorgan Cazenove
Robert Fowlds 020 7588 2828
Bronson Albery
Cardew Group
Tim Robertson 020 7930 0777 /Β
Shan Shan Willenbrock 07900 927 650
Catherine MaitlandΒ
Follow the stocks
