Sirius Real Estate Ltd. is planning to place new ordinary shares to raise as much as £35 million, which it would use to fund the acquisition of assets and to support the company's growth strategy.
The company will conduct an accelerated bookbuilding process to offer the placing shares to institutional and other investors. The company is buying a portfolio of five assets for a total price of about €77 million, including acquisition costs. The properties, three of which have been identified and the remaining two are yet to be identified, have an EPRA net initial yield of roughly 7.3%. The vacancy rate of the three identified assets comes to about 17%.
If the acquisitions do not take place, the company will use the proceeds from the placement to fund potential alternative acquisitions.
The placing shares, when placed, will represent about 6% of the company's existing issued share capital and will be fully paid and rank pari passu in all respects with the existing ordinary share in the company's capital. Upon completion of the bookbuild, the joint book runners will determine the number of placing shares and the price.
Sirius Real Estate will submit an application to admit the placing shares to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange, and to the main board of the Johannesburg Stock Exchange. The shares are expected to be admitted March 28 at the start of trade.
Joh. Berenberg Gossler & Co. KG London Branch, Peel Hunt LLP and PSG Capital Proprietary Ltd. are acting as joint book runners for the placing.