Sirius Real Estate completes £77m raise to fund German asset purchases

(Sharecast News) - Property firm Sirius Real Estate said on Tuesday that it had completed its latest capital raise, with the proceeds set to support two planned acquisitions in Germany focused on defence‑related assets and tenants. Sirius Real Estate said the fundraising had resulted in the issue of 75.49m new shares, generating £77m in gross proceeds, with the new shares representing around 5% of the company's existing issued share capital.

The offer price was set at 102p, a small premium to both the its closing price on 16 February and the 30‑day volume‑weighted average price on the Johannesburg Stock Exchange.

The FTSE 250-listed firm stated the funds will allow it to move ahead with two near‑term acquisition opportunities in Germany with a combined estimated value of about €130m.

Chief executive Andrew Coombs said: "The success of this fund raise, which was multiple times oversubscribed and was priced in line with our latest adjusted NAV, demonstrates the continued support amongst the investment community for our strategy, the quality of our existing portfolio, as well as the opportunity for further growth from our pipeline.

"The two German assets we are buying are in established locations, with strong tenants, high occupancy and stable day one income. They are complementary to our existing value-add portfolio in Germany and the UK and increase our exposure to the fast growing defence sector. We will continue to progress our pipeline with a firm focus on disciplined capital allocation and recycling to achieve our recently increased medium term FFO target of €175m."

As of 0950 GMT, Sirius shares were up 3.96% at 105p.

Reporting by Iain Gilbert at Sharecast.com