Sirius Real Estate Limited SIRIUS ACQUIRES THREE BUSINESS PARKS FOR EUR26.0M (3778K)
January 04 2021 - 1:00AM
UK Regulatory
TIDMSRE
RNS Number : 3778K
Sirius Real Estate Limited
04 January 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
4 January 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS COMPLETES THE ACQUISITION OF THREE BUSINESS PARKS FOR
EUR26.0M
Latest acquisition adds scale to existing business park at
Mannheim
Sirius Real Estate, the leading owner and operator of branded
business parks providing conventional space and flexible workspace
in Germany, announces that it has completed three transactions
totalling EUR26.0 million (including acquisition costs). These
comprise two previously announced acquisitions (Norderstedt,
Hamburg for EUR9.1 million and Nuremberg for EUR13.7 million), and
a new acquisition for EUR3.2 million immediately adjacent to the
Company's existing Mannheim II business park.
The acquisitions result in the Company starting the calendar
year with three new cash-generative assets which have been acquired
at an attractive blended EPRA net initial yield of 7.2% and
generate in total EUR1.9 million of annualised net operating
income. The assets provide a mix of approximately two-thirds
production and storage space and one-third out-of-town office. The
Company acquired them all on an unencumbered basis using existing
cash resources. Sirius has significant finance available to acquire
additional assets alongside seeking assets for its Titanium joint
venture.
The new asset located in the Käfertal commercial area of
Mannheim previously formed part of the Company's existing Mannheim
II asset that it acquired in October 2018, with which it is now
reunited. The acquisition totalling EUR3.2 million (including
acquisition costs), reflects an EPRA net initial yield of 6.6% and
creates a wider range of asset management options for the combined
assets as well as the ability to benefit from operational
synergies. The site comprises around 3,000 sqm of out-of-town
office and storage space and is currently 93% occupied by a total
of seven tenants with an average rent of EUR6.93 per sqm, and an
annualised gross income of EUR235,226.
Commenting on the acquisitions, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "Our most recent acquisitions
at Mannheim, Norderstedt and Nuremberg see us drawing on Sirius's
on the ground knowledge of local markets to acquire assets at
attractive yields offering a combination of secure income and
value-add potential.
"These business parks are immediately accretive to earnings and
signal a return to acquisitive growth for the Company after holding
back whilst assessing the impact of Covid-19 on the marketplace.
Two thirds of the total space acquired relates to production and
storage space whilst the remaining office space provides the
Company with the opportunity to offer its high yielding out-of-town
flexible office products.
"Our latest acquisition in Mannheim's Käfertal commercial area
provides significant operational synergies and we believe there is
potential to unlock value when we consider the asset alongside our
existing adjacent business park, Mannheim II.
"As we enter the new year, we continue to benefit from a strong
cash position and are focused on executing our healthy pipeline of
further acquisitions."
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 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
Investment Managers - Real Assets. Titanium was formed through the
acquisition by AXA Investment Managers - Real Assets, 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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