Sirius Real Estate has raised €350m (£295m) through a senior unsecured corporate bond issuance to finance earlier borrowing and back acquisitions.
The six-year bond carries a coupon of 4% and is expected to be rated BBB by Fitch. The deal was five times oversubscribed.
The deal will increase Sirius’ weighted average debt maturity to 4.2 years from 3.5 years with its total average cost of debt rising to 2.6% from 2.1%.
Chief financial officer Chris Bowman said: “We appreciate the strong support that we have received from institutional investors for this €350m bond issue, which provides valuable, long-duration liquidity to enable us to continue executing our value-add growth plan.
“We remain well within our net LTV guidance of 40% or below. The strength of Sirius’ investment case and capital markets access demonstrates investor confidence in our ability to generate strong income returns and our longer-term growth strategy.”
Deutsche Bank, HSBC and Morgan Stanley acted as joint bookrunners on the deal, with Lazard financial adviser.
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