Sirius Real Estate has refinanced a €170m (£149m) slab of debt a year early, extending the expiry but raising the cost.
The UK and Germany business and industrial park owner refinanced the facility with Berlin Hyp AG, approximately one year in advance of the facility’s due date.
The refinancing comprises a new seven-year, €170m facility at a fixed interest rate of 4.26%, which will replace and redeem the existing facility upon its expiry on 31 October 2023. While it extends the Sirius’s total weighted average debt expiry from 3.8 years to five years, the company’s weighted average cost of debt will increase from 1.4% to 1.9%.
As of 30 September, Sirius had a total of €993m of outstanding debt, €750m of which is unsecured. The remaining €243m is mortgage-backed debt, the most significant tranche of which is the newly refinanced €170m Berlin Hyp AG facility.
Sirius has €1.6bn of unencumbered assets and in excess of €138m of free cash available.
CIO and interim CFO Alistair Marks said: “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. 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.”
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