Sirius Real Estate announces new banking facility

The acquisition takes the total number of parks in the group’s portfolio to 43 and the total consideration represents a 9.1% EPRA net initial yield.

Sirius pointed out that Wiesbaden is one of the core cities in the Frankfurt/Rhine-Main regions and said the business park “offers primarily good quality office space which in particular fits Sirius's flexible multi-tenanted workspace strategy”.

In addition, the company – which operates branded business parks in Germany – confirmed that it has completed a new seven-year €70m banking facility with BerlinHyp with an all-in fixed interest rate of 1.48% for the term of the loan to replace an existing €39.3m facility which was incurring interest of 2.73%.

Sirius said this has further reduced its weighted average cost of debt to 2%, adding that the extra funds from the increased facility are being used partly to fund the previously announced Dresden acquisition as well as the Wiesbaden property.

The group said the interest rate achieved was “a record low fixed rate for Sirius and highlights the acquisition yield to interest rate opportunity currently available to the company”.

It has a further €10m of equity remaining from the June 2016 equity raise, which it is intending to use to acquire further assets.

At 1133 BST, Sirius shares were up 1% to €0.53.