CAPE TOWN - Sirius Real Estate, an operator of branded business parks in Germany, yesterday said that occupier demand remained strong in the six months to September 30 and trading was in line with management expectations.
Chief executive Andrew Coombs said: “The foundations have been set for a strong second half to this financial year”.
The group had 170million (R2.83billion) to invest into new assets, capital expenditure and further equity into the Titanium joint venture.
It said a 115.4m increase in its existing debt facility with BerlinHyp had been agreed, which increases the facility to 180.2m.
The Nabern-Kirchheim business park asset will be added to the security portfolio as part of the agreement. The Nabern-Kirchheim asset was previously financed as part of the K-Bonds facility - the K-Bonds facility was repurchased on completion of Titanium.
Some 24.6m of the proceeds from the completion of Titanium were used to repay K-Bonds, leaving a net 90m of surplus funds available from the extended BerlinHyp facility.
Loan to value was expected to remain at less than 40percent after drawing down the increased facility with BerlinHyp.
Positive letting activity was reflected in more than 50000m² of move-ins, offsetting vacating tenants, which included 25000m² of move-outs in recently acquired sites, which were known to the group prior to acquisition.
Annualised rent roll, including acquisitions and disposals was about 78.5m, compared with 76.5m at the start of the period.
Like-for-like annualised rent roll increased by 0.9percent to 77.2m, compared to 76.5m at the start of the period, despite the move-outs.
The Titanium joint venture with AXA Investment Managers - Real Assets was completed in July, through the sale of 65percent of its interest in five business parks generating net proceeds for Sirius of more than 70m.
A pipeline of acquisition opportunities which fit with Titanium’s investment criteria had been identified.
Three property acquisitions, worth 21.9m were completed and two additional properties were notarised for 65.7m.
In July Sirius established its Titanium real estate investment joint venture with clients represented by AXA Investment Managers - Real Assets.
Sirius Real Estate shares rose 1.24percent on the JSE yesterday to close at R13.89.