Sirius Real Estate wraps up £150m debt refinancing one-year early
Sirius Real Estate has wrapped up a refinancing of a €170m (£148m) debt facility with commercial real estate financier Berlin Hyp AG.
The London-listed company, which operates industrial parks and flexible workspaces in Germany and the UK, completed the refinancing around one year in prior to the facility’s due date.
Refinancing means a borrower has applied for a new loan or debt instrument that has better terms than a previous contract – and can be used to pay down the previous agreement.
Sirius now heads into a new seven-year, £148m facility at a fixed interest rate of 4.26 per cent, which will replace the existing facility next October.
The group, as of the end of September, had a total of €993m (£866.5m) of outstanding debt, €750m (£654.5m) of which is unsecured, with the remaining comprised mortgage-backed debt.
The latest refinancing has pushed up the group’s average debt expiry from 3.8 years to five years.
“The willingness of Berlin Hyp AG to extend this €170m facility now for seven years beyond its expiry in October 2023 is indicative of our relationship with our existing and longest standing financiers in Germany and the confidence that they have in our business model and the quality of our assets,” chief investment officer and interim financial lead, Alistair Marks, said in a statement today.
“We have a strong balance sheet which is well positioned to provide us with flexibility to react to changing market conditions and opportunities as they arise.”