Sirius Real Estate has completed the early refinancing of the company’s next major debt expiry, a €170 million facility with Berlin Hyp AG, approximately one year in advance of the facility’s due date.
The refinancing comprises a new 7-year, €170 million facility at a fixed interest rate of 4.26%, which will replace and redeem the existing facility upon its expiry on 31 October 2023.
As of 30 September 2022, 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 AG facility referred to above.
This refinancing facility extends the Group’s total weighted average debt expiry from 3.8 years to 5.0 years. When the new facility commences just over a year from now, the Group’s weighted average cost of debt will increase from 1.4% to 1.9%.
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, which it is confident of either extending terms with the existing lenders, replacing with new lenders or paying down.
Commenting on these transactions, Alistair Marks, Chief Investment Officer and Interim CFO of Sirius Real Estate, said: “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. 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.“