Sirius Real Estate Limited Sirius completes acquisition of business park (7332Y)
May 13 2019 - 1:00AM
UK Regulatory
TIDMSRE
RNS Number : 7332Y
Sirius Real Estate Limited
13 May 2019
13 May 2019
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius completes acquisition of business park near Hamburg
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, has completed the acquisition of Buxtehude Business Park
south west of Hamburg, in Lower Saxony, for a total consideration
of EUR8.7 million including acquisition costs. The vendor is a well
known, international spirits company. The acquisition, notarised in
March 2019, has been funded from existing cash resources.
The business park, which provides 28,532 sqm of lettable space
(90% warehouse/ production space; 6% offices; and, 4% of other
space) on a plot of 35,425 sqm, is being acquired with full vacant
possession. Sirius will make use of its operating platform to
re-let the site using a multi-tenant strategy with an anchor tenant
surrounded by several smaller tenants with multiple different lease
lengths.
Buxtehude, located 30 km southwest of Hamburg city centre, is
part of the Hamburg Metropolitan Region. It is attached to the
city's S-Bahn rapid transit network and has easy access to the
Autobahn network. Major companies operating in the town include
Airbus, Unilever and Pioneer.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate,
said: "Buxtehude is our third acquisition in the Hamburg area and
is part of our inititive to sell our three non-core properties in
Bremen, which we completed last month and move the resources and
capital from Bremen into the Hamburg market where we believe
opportunities and returns will be much greater. Buxtehude with the
potential to accommodate a flexible multi-tenant structure, in an
area where take up is robust and rents are growing is an exciting
value-add opportunity for Sirius."
"The acquisition plays to the strengths of our integrated
business model and track record of generating tenant demand,
maximising space usage and achieving management efficiencies."
"We are already generating interest in this park from
prospective tenants and we believe Buxtehude will complement the
Company's two existing Hamburg sites."
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285010110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150
Email: siriusrealestate@tavistock.co.uk
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main market and
premium segment of the London Stock Exchange and the main board of
the Johannesburg Stock Exchange. It is a leading operator of
branded business parks providing conventional space and flexible
workspace in Germany. The Company's core strategy is the
acquisition of business parks at attractive yields, the integration
of these business parks into its network of sites under the
Company's own name as well as offering a range of branded products
within those sites, and the reconfiguration and upgrade of existing
and vacant space to appeal to the local market, through intensive
asset management and investment. The Company's strategy aims to
deliver attractive returns for shareholders by increasing rental
income and improving cost recoveries and capital values, as well as
by enhancing those returns through financing its assets on
favourable terms. Once sites are mature and net income and values
have been optimised, the Company may take the opportunity to
refinance the sites to release capital for investment in new sites
or consider the disposal of sites in order to recycle equity into
assets which present greater opportunity for the asset management
skills of the Company's team.
On 1 March 2019, Sirius announced that, in a transaction
anticipated to complete in June 2019, it had formed a real estate
investment joint venture with clients represented by AXA Investment
Managers - Real Assets in which AXA acting on behalf of its
clients, will own a 65% interest and Sirius will own the balance of
35%. The JV is called Titanium. The JV will initially be formed by
AXA acquiring, on behalf of its clients, from Sirius a 65% stake in
five SPVs through which it currently owns two business parks
located in Berlin (Berlin Borsig and Berlin Tempelhof) and one in
each of Mainz, Nurnberg and Bayreuth. The business parks provide a
combination of office, warehouse, industrial and storage space. The
implied property value of EUR168 million equates to a gross yield
for the portfolio of 6.2% and reflects a premium to the last
reported book value as at 30 September 2018 which was EUR141.1
million. Total cash commitment from AXA IM - Real Assets amounts to
EUR43.9 million. The transaction is expected to generate total cash
proceeds of more than EUR70 million for Sirius after refinancing
and expected related costs.
For more information, please visit:
www.sirius-real-estate.com
Follow us on LinkedIn at
https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566
JSE Sponsor
PSG Capital
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END
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