Sirius Real Estate issues second Corporate Bond raising €300m

Alistair Marks, Chief Financial Officer of Sirius Real Estate.

Sirius Real Estate has announced that it has raised €300 million in a second senior unsecured corporate bond issuance following its €400 million inaugural bond issuance in June 2021.

The bond, which matures at the end of 2028, carries a coupon of 1.75% and it is expected to be rated BBB by Fitch. The higher coupon over the June issuance reflects the longer maturity date.

Following on from its recent successful equity raise, the €300 million bond issuance attracted a solid oversubscription, underlining the support from both equity and debt investors for the company and its business model. The new facility will increase Sirius’ weighted average debt expiry to 4.7 years from 3.7 years as at 30 September 2021 with its total average cost of debt rising slightly to 1.36% (1.2% as at 30 September 2021).

The company will use part of the proceeds to partially finance its recent expansion into the UK market through its acquisition of the BizSpace Group, which it purchased based on an enterprise value of £380 million. This will include repaying the existing secured debt facilities within BizSpace as well as replenishing its cash resources to be used to execute further acquisitions from its significant pipeline of opportunities.

The bonds are governed by German law and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange.

Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the transaction.

Alistair Marks, Chief Financial Officer of Sirius, commented: “After the success of our inaugural €400 million corporate bond in June, it is very pleasing to issue a further €300 million of notes, locking in continued low rates, to help fund our recent acquisition of BizSpace, particularly given the recent volatility in the debt markets. Furthermore, 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.”