Sirius Real Estate Ltd said on Thursday a German real estate lender had agreed to extend its €170 million refinancing facility for seven years.
The London and Johannesburg-listed property investor said early refinancing by Berlin Hyp AG comes about one year in advance of the facility’s expiry next year.
The refinancing comprises a new seven-year, €170 million facility at a fixed interest rate of 4.26%, which will replace and redeem the existing facility upon its expiry on October 31, 2023.
As at September 30, the group had a total of €993 million of outstanding debt, €750 million of which is unsecured. The remaining €243 million comprised mortgage-backed debt, of which the most significant tranche is the newly refinanced €170 million Berlin Hyp facility.
The company has €1.6 billion of unencumbered assets and in excess of €138 million of free cash available.
Within the next 12 months, Sirius has a total of €35 million of debt expiring. It said it was confident that either existing lenders wouldextend it, new lenders may replace it or it may pay it down.
‘The willingness of Berlin Hyp AG to extend this €170 million 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,’ said Alistair Marks, chief investment officer and interim chief financial officer of Sirius.
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