German financial services group SEB AG has provided a €59m, seven-year refinancing facility at a fixed rate of 1.84% to Sirius Real Estate.
The refinancing takes out two Macquarie Group facilities and reduces Sirius’s annual cost of debt by around €2.6m.
Sirius, which specialises in providing business park workspace in Germany, is also in negotiations to secure a five-year facility at 1.25% to fund the €57.24m purchase of five assets.
“The acquisition of these five new sites coupled with the refinanced Macquarie debt at a fixed seven year interest rate of 1.84% will have a significant impact on Sirius’s profitability and funds from operations going forward,” said Andrew Coombs, chief executive of Sirius.
The purchase of three of the five mixed-use business parks being acquired has been completed and the remaining two assets in Aachen and Cologne are expected to close in October.
Sirius, which is listed on London’s Alternative Investment Market, said the business parks will contribute €5.33m of annual rental income, providing €4.64m of net operating income after deducting costs.