London-listed real estate company Sirius Real Estate has successfully raised £150 mln (€178 mln) through a share placement to fuel further acquisitions.
The company will issue 159.6 million new ordinary shares for £0.94 (€1.11) each, representing 11.8% of the issued share capital and at a 3.5% discount on the previous closing price.
The new shares were offered to a mix of existing and new long-term investors, with pre-emptive rights given to current shareholders.
BlackRock participated by subscribing for 17.7 million shares, contributing roughly £16.7 mln (€19.8 mln). Following completion of the capital raising, BlackRock will hold approximately 11.1% of the share capital. Certain company directors and associates also subscribed for shares at the offering price.
Sirius CEO, Andrew Coombs, said: ‘The success of this capital raise is a strong endorsement of our ambitious growth strategy and operational track record, having recently announced our tenth year of both annualised rental growth above 5% and dividend increases. We now look forward to investing the proceeds into our identified pipeline of attractive acquisition opportunities across both Germany and the U.K., and to utilizing our operating platform to add value to these assets.’
Sirius Real Estate boasts a robust acquisition pipeline with ongoing discussions for additional properties in Germany and the UK.
Five promising acquisitions have been identified, two in Germany worth €32.9 mln and three in the UK totaling £30.2 mln (€35.8 mln). The properties come from a variety of sellers, including private individuals, private equity firms, and corporations. All sites benefit from strong tenant demand, ensuring continued rental income.
Beyond the immediate opportunities, Sirius Real Estate has identified a further pipeline exceeding €100 mln across Germany and the UK. These potential acquisitions offer attractive initial yields and could be executed on in the medium term.
Berenberg, Peel Hunt, and Panmure Liberum managed the share placement globally, while PSG Capital handled the placement specifically for South Africa.
This latest capital raise follows their successful £147 mln (€174 mln) equity raise in November 2023 from which all proceeds have been invested, as well as the €59.9 mln bond tap in May.
Sirius Real Estate owns and operates business parks, offices, and mixed-use workspaces in the UK and the seven largest German cities by population (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart, and Düsseldorf). As of 31 March, its portfolio consisted of 142 assets with a book value of over €2.1 bn.
