TIDMSRE
RNS Number : 3299S
Sirius Real Estate Limited
16 March 2021
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
16 March 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS TO ACQUIRE ESSEN BUSINESS PARK
Sirius Real Estate, the leading owner and operator of branded
business and industrial parks providing conventional space and
flexible workspace in Germany, announces that it has notarised the
acquisition of a business park in Essen for EUR10,710,000. The
transaction is by way of a sale and leaseback with thyssenkrupp,
the international industrial engineering and technology group, and
reflects an EPRA net initial yield of 6.5%. The purchase was
sourced by the Sirius acquisitions team off-market and will be
funded from existing cash resources, with completion expected in Q2
2021.
Built between 1962 and 1963, the mixed-use business and
industrial park offers 14,711 sqm of gross lettable area, of which
45% is warehouse, 42% is office and 13% production space. The park
is situated on a 34,844 sqm plot, which includes a 4,450 sqm parcel
of land that offers the potential for development into additional
warehouse and office space. The site currently has 190 parking
spaces.
The business park is currently 80% let to six entities within
thyssenkrupp, and produces total annualised rental income of
approximately EUR830,000, reflecting an average rent of EUR5.85 per
sqm (including car parking).
The weighted average unexpired lease length is 1.4 years,
presenting Sirius with a range of asset management options and the
opportunity to increase income through the re-letting of vacated
space and selective investment into the asset.
Located in the south west of Essen, around 2km from the city
centre, the park is highly accessible by rail and car. Essen is the
second largest city in the Ruhr, Germany's most populous region and
industrial heartland, which is home to many of the country's
largest companies. Sirius already manages office space at Ruhrturm
Essen, also located in the south of the city.
Commenting on the acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "The business park we are
acquiring at Essen offers a good mix of warehouse and office space,
as well as great potential for Sirius to use our asset management
capability and local expertise to add value, improve rental tone
and explore development of part of the site. Essen is a city we
know well and one we believe has strong long-term growth prospects.
The asset is well positioned for the Autobahn and public transport,
and will also complement the space we manage at Ruhrturm Essen.
"We were able to proactively secure this high-yielding asset on
an off-market basis from thyssenkrupp directly, demonstrating the
power of our local knowledge and network, and we see further
opportunities to acquire assets from Germany's manufacturing and
industrial firms looking to free up capital. This presents a
positive opportunity to strengthen our pipeline and source the most
attractive deals.
"This will be the fifth asset acquired by Sirius Real Estate in
the second half of our financial year, bringing our total
acquisitions to EUR46.2m. Alongside our Titanium joint venture,
Sirius has executed EUR125m of transactions over this period,
underlining our significant presence in the German industrial
market."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / James McEwan / Talia
Jessener
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
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 JSE Limited. It is a leading operator of branded business parks
providing conventional space and flexible workspace in Germany. The
Company's purpose is to create and manage optimal workspaces that
empower small and medium-sized businesses to grow, evolve and
thrive. Sirius seeks to unlock the potential of its people, its
properties, and the communities in which it operates, so that
together we can create sustainable impact, and long-term financial
and social value.
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.
Sirius also has a venture with clients represented by AXA IM
Alts. Titanium was formed through the acquisition by AXA IM Alts,
on behalf of its clients, from Sirius, of a 65% stake in five
business parks across Germany. Sirius retained the remaining 35%.
The venture seeks to grow primarily through the acquisition of
larger stabilised business park assets and portfolios of assets
with strong tenant profiles and occupancy. As well as its equity
interest, Sirius acts as operator of the assets in the venture, on
a fee basis. Sirius will continue to grow its wholly owned
portfolio through acquisitions of more opportunistic assets, where
it can capitalise on its asset management expertise to maximise
utilisation of the space, grow occupancy and improve quality of the
tenants. The strategies have been clearly defined so that the
venture does not conflict with Sirius's existing business.
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
JSE Sponsor
PSG Capital
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