Sirius Real Estate has announced proposals for a private placing to raise up to €20m, which they say is to be used for further acquisitions. The company has also announced that it is refinancing an existing credit facility and is proposing a secondary placement of up to 27m shares. The Private Placement is conditional upon the Secondary Placement occurring at the same time.
The company says that it has a pipeline of further acquisitions with an all-in cost of up to €55.8m of which €29.1m (referred to as the Acquisition Portfolio) is in exclusivity and €26.7m is under negotiation. The company says that the Acquisition Portfolio is expected to be acquired with an EPRA net initial yield of 8.1% and would contribute approximately €5.3m to annualised rental income and €4.5m to net operating income.
The company proposes to refinance an existing €39.6m facility currently with an interest rate of 2.68% and a 3.5 year remaining term, with a new €77m 7-year bank facility with an expected fixed interest rate of around 1.6% with the same lender. The purchase of the Acquisition Portfolio will be met in part by the net funds raised from the Private Placement and the balance will be funded by the proposed new banking facility, which is currently under negotiation.
The company says that the Acquisition Portfolio is expected to increase the Company’s annualised rental income to in excess of €68m and the whole transaction is expected to be approximately 7.6% accretive to the annual dividend per share when all transactions are completed. They say that there will be a very marginal dilution to Adjusted NAV per share. Overall they expect that the Acquisition Portfolio will generate an IRR over 5 years of more than 15%.
Sirius Real Estate announces fundraising, debt refinancing and proposes acquisitions : SRE