Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) told investors it has completed the early refinancing of its next major debt expiry, a €170mln facility, just over a year ahead of its due date.
The investor in flexible workspace in Germany and the UK now has a new seven-year, €170mln facility with the same lender, Berlin Hyp AG, at a fixed interest rate of 4.26%, which will replace and redeem the existing facility upon its expiry at the end of October 2023.
The refinancing facility extends the FTSE 250-listed group's total weighted average debt expiry from 3.8 years to 5.0 years and, when it takes effect just over a year from now, the group's weighted average cost of debt will increase from 1.4% to 1.9%.
As of 30 September 2022, Sirius had a total of €993mln of outstanding debt, €1.6bn of unencumbered assets and more than €138mln of free cash.
Of its outstanding debt, €750mln was unsecured and the refinancing covered the most significant tranche of the remaining €243mln mortgage-backed debt.
Within the next 12 months, Sirius has a total of €35mln of debt expiring, which it said it is confident of either extending terms with the existing lenders, replacing with new lenders or paying down.
Alistair Marks, chief investment officer and interim chief financial officer of Sirius, said the willingness of the bank to extend the facility for seven years beyond its expiry 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.”