The branded business parks operator, which provides conventional and flexible workspace to the German market, also stated that it raised 40 million euros by a private placement of 105,263,158 new ordinary shares at a price of 38 cents per ordinary share.
This is to fund, in part, the proposed acquisition of five mixed use business parks, with an all-in cost of 76 million euros. Sirius added that the balance will be funded by a new 36 million euro facility to be provided by the company’s existing bankers.
“The fact that around 40 per cent of our shareholders were already South African based was key to our decision to seek a secondary listing on the JSE,” said Sirius chief executive, Andrew Coombs.
“We are pleased to have proved to be an attractive investment opportunity to South African investors and we are delighted with the support for the private placement. The significant portion of the placing taken up by these South African investors should allow for good liquidity in the shares going forward.”
Sirius is also the first company to make use of the JSE’s new fast track process for companies to seek a secondary listing on the JSE.
The process was introduced to make it easier for companies already listed on one of four specified stock exchanges to access the South African capital markets at a lower cost.
“The option to make use of the fast track process was another important factor in deciding to go forward with the listing as it meant we could complete it quickly and cost effectively,” said Coombs.
“We are delighted to have the honour of being the first company to be fast tracked and we thank the JSE for their tremendous cooperation with Sirius.”
Coombs added that the capital raised would support the proposed acquisition of a new selection of German business parks that Sirius has secured and that offer an overall attractive net initial yield.
“In light of the excellent banking terms we have agreed, the portfolio will have an initial cash on cash yield of 12.9 per cent,” he said.
“The properties fit well within our existing network and we feel confident we can add significant further value through the opportunities within the vacant and other space in the assets.”