TIDMSRE
RNS Number : 7495Y
Sirius Real Estate Limited
06 January 2020
6 January 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius acquires two business parks for total of EUR33.4
million
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, announces that it has completed the acquisitions of Neuss
II, a business park near Düsseldorf, and Neuruppin Business Park,
in the Brandenburg region, for a combined total of EUR33.4 million
(including acquisition costs), reflecting an aggregate EPRA net
initial yield of 6.8%.
Neuss II
Originally constructed in 1987 and since expanded, Neuss ll
provides a total of 34,000 sqm of net lettable space (21,900 sqm of
warehouse/production, 11,700 sqm of office and 400 sqm of other
space), together with 371 parking spaces, on a total plot size of
58,800 sqm. The property is located on Fuggerstrasse in Neuss, 9.5
km south of Düsseldorf city centre. Sirius already owns an 18,000
sqm office building in Neuss and two other business parks in
Düsseldorf.
The asset is 81.5% let to sixteen tenants, producing an annual
rental income of EUR1.3 million, reflecting an average rate of
EUR3.84 per sqm, and has a remaining WALT of 4.4 years. Tenants
include Max Mothes GmbH, global specialists in the production and
logistics of high-performance connecting technology, Steep GmbH,
DINAX GmbH and FEAG GmbH, service providers in power generation and
distribution.
The property has been acquired from a regional family real
estate office for EUR19.1 million (including acquisition costs),
reflecting an EPRA net initial yield of 5.4%.
Neuruppin
Originally constructed in 1992 and since expanded, Neuruppin
Business Park, provides 22,400 sqm of net lettable space (12,600
sqm of production space, 7,200 sqm of warehouse space and 2,600 sqm
of offices), together with 169 parking spaces on a total plot size
of 108,200 sqm. The property is located 4.3 km south of Neuruppin
city centre, 75 km north west of Berlin. Neuruppin is likely to
benefit from a EUR1.4 billion road infrastructure expansion project
on the main highway between Berlin and Hamburg, anticipated to
complete in 2022.
The asset is 100% let to a single tenant, ESE GmbH, Europe's
leading manufacturer of temporary storage systems for waste and
recyclables, on a lease with 5.5 years to run, at a current annual
rent of EUR1.3 million, reflecting a rate EUR 4.97 per sqm. The
property has been acquired from Otto Immobilien GmbH & Co. KG
for EUR14.3 million (including acquisition costs), reflecting an
EPRA net initial yield of 8.6%.
The Company has now completed EUR98 million of the EUR170
million in acquisition capability that was set out in its Interim
Results announced on 25 November 2019. These acquisitions provide a
total of 136,000 sqm lettable area, with 14% vacancy, producing a
current annual rent of EUR7.7 million, reflecting a blended EPRA
net initial yield of 6.5%. Additionally, Sirius is reviewing a
number of potential acquisitions for investment of its remaining
designated acquisitions capital.
Commenting on these acquisitions, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "The last month has been
particularly successful on the acquisitions front providing us with
some great assets which have good value add potential that can be
realised next year and beyond.
"Neuss ll fits well with our strategy of buying assets at low
capital values, with low average rents compared to the local market
and located around key German cities. It offers us a good
opportunity to add significant value by playing to the strengths of
our integrated business model and track record of maximising
occupation and growing rental levels.
"The Neuruppin property, which is 100% let to a tenant with a
strong covenant with a WALE of 5.5 years and an EPRA net initial
yield of 8.6%, is a very good acquisition, particularly when you
take into account the tenant's potential plans to expand in the
area as well as the further opportunity to develop vacant parcels
of land within the site."
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285 010 110
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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