In a positive sign for the listed-property company sector, Sirius Real Estate, an owner of business and industrial parks in Germany and the UK, has announced it is looking to raise £145m from investors to reduce leverage and expand its portfolio.
The company announced the fundraising this morning alongside its results for the six months ended 30 September 2023. Sirius recorded a 7.3 per cent increase in total revenue to €140.1m, 13.5 per cent increase in earnings per share and a 11.1 per cent increase in its dividend per share to three cents.
Group EPRA net tangible asset value per share per share increased by 0.4 per cent to 108.51 cents.
Since the end of September Sirius Real Estate has completed four “balance sheet transactions,” disposing of assets in Germany and adding to its portfolio in the UK.
Sirius said it believed the conditions in its key markets, Germany and the UK, “currently present a significant near term pipeline of attractive acquisition opportunities.”
The capital raise will, “provide the flexibility to execute on that pipeline and replenish funds to use opportunistically following several acquisitions in recent months.”
Primarybid is facilitating part of the fundraising, allowing retail investors to take part alongside the institutional offer, conducted through an accelerated book building process.
Chief executive Andrew Coombs said: “The fundraise we are proposing this morning follows another positive set of financial and operational results from Sirius, which once more demonstrates our ability to drive value throughout the economic cycle.”
Following its announcement, Sirius’ share price was down almost four per cent after the open.