Sirius Real Estate Limited Completion of acquisition (1148X)
December 17 2019 - 1:00AM
UK Regulatory
TIDMSRE
RNS Number : 1148X
Sirius Real Estate Limited
17 December 2019
17 December 2019
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius completes EUR44.5 million acquisition of business park
near Frankfurt am Main
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, announces that, further to its notarisation announcement
on 26 July 2019, it has completed the acquisition of Alzenau
Business Park, 34km east of Frankfurt am Main. The total purchase
consideration of EUR44.5 million, including acquisition costs of
EUR2.5 million, was acquired on an EPRA net initial yield of 7.9%.
The acquisition will initially be funded using proceeds from recent
asset recycling activity and will be injected into an existing
facility in the near future.
The vendors are RWE Generation SE and GfV Gesellschaft für
Vermögensverwaltung mbH represented by Innogy SE.
The business park comprises eleven buildings constructed between
1985 and 2002 providing a total of around 60,000 sqm of lettable
space (47% warehouse/production space; 47% office space; and 6%
other space) as well as 1,063 parking spaces on a total plot size
of approximately 197,000 sqm.
The asset is 93.5% let to 16 tenants with an annual total income
of EUR4.1 million and annual net operating income of EUR3.5 million
as at July 2019.
The asset has a weighted average rent of EUR5.51 per sqm with a
remaining WALT of 3.5 years. Tenants include Applied Materials, the
global leader in materials engineering solutions for the
semiconductor, flat panel display and solar photovoltaic
industries; Bühler Alzenau GmbH, manufacturers of high-vacuum
deposition equipment; and Nukem Technologies GmbH, operating in the
management of radioactive and hazardous waste, decommissioning of
nuclear facilities as well as engineering and consulting services.
There is also an 8,200 sqm plot of land let to Aldi until 2048
producing an annual income of EUR101,000. Overall, the asset
provides the Company with stable income from a well-diversified and
covenanted tenant base.
Commenting on the acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "Alzenau Business Park is the
largest single acquisition since the current management took over
at Sirius, reflecting our capacity to acquire larger lot sizes, of
which we expect to do more both for our own portfolio and through
our Titanium joint venture with AXA.
"This asset provides an attractive running yield, which will
support our strategy to grow our funds from operations.
Furthermore, there is a good mix of long-standing tenants with
strong covenants."
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.
In July 2019, the Company completed the formation of its
Titanium real estate investment joint venture with clients
represented by AXA Investment Managers - Real Assets. Titanium was
formed through the acquisition by AXA IM - Real Assets, on behalf
of its clients, from Sirius, of a 65% stake in five business parks
across Germany. Sirius will retain the remaining 35% and will act
as operator of the assets, on a fee basis. Subject to suitable
investment opportunities, AXA IM - Real Assets and Sirius may
consider opportunities to grow the JV's portfolio primarily through
the acquisition of larger stabilised business park assets and
portfolios of assets with strong tenant profiles and occupancy.
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 JV 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
LEI: 213800NURUF5W8QSK566
JSE Sponsor
PSG Capital
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END
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