Sirius Real Estate is looking to raise £145m from a share placing to enable the business to acquire a number of properties in the UK and Germany.
The capital raise will comprise an institutional placing that will be conducted through an accelerated book building process, which will be launched immediately. New ordinary shares issued pursuant to the capital raise will be eligible for the interim dividend of 3.00 cents (€) per share.
The directors of Sirius said they have identified a pipeline of eight “attractive acquisition opportunities” which meet the group’s acquisition criteria – four in Germany, which would require approximately €85m of acquisition costs, and four in the UK, which would require approximately £45m.
The vendors of the assets are a mix of private individuals and institutional owners and there is an average investment size of approximately £15m across the pipeline with a range of deal sizes from £4.2m to £23.4m.
Andrew Coombs, chief executive officer of Sirius Real Estate, 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. We have delivered further strong FFO growth and announced a double digit increase in dividend, with our asset management platform continuing to deliver rental growth to offset market wide yield expansion.
“During the period we have also been busy sourcing a strong pipeline of accretive investment opportunities at a time when we see real value in our sectors. The proceeds of today’s capital raise will allow us to execute on these acquisitions and add a number of high quality assets to the portfolio where we have identified the opportunity to grow our rental income as well as create value through Sirius’ operating platform.”
Earlier today, Sirius reported a 7.3% increase in total revenue to €140.1m and a 2.0% increase in adjusted profit before tax to €49.9 m for the six months to 30 September 2023. The book value of the company’s UK property portfolio decreased 2.1% in the reporting period.
