Sirius Real Estate Limited Sirius notarises park in Norderstedt, Hamburg (9262Y)
14 September 2020 - 10:30PM
UK Regulatory
TIDMSRE
RNS Number : 9262Y
Sirius Real Estate Limited
14 September 2020
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
14 September 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius notarises a business park in Norderstedt, Hamburg
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, announces that it has notarised the acquisition of a
business park in Norderstedt, just north of central Hamburg, for a
total of EUR9.1 million (including acquisition costs), reflecting
an EPRA net initial yield of 7.6%. The acquisition will be funded
using existing cash resources of approximately EUR127.0 million,
EUR108.5 million of which is unrestricted. This will leave the
Company with just under EUR100.0 million of unrestricted cash after
the acquisition of Norderstedt is taken into account. Completion of
the acquisition is expected in December 2020.
Acquisition Details
Constructed between 1969 and 1991, the site provides 12,600 sqm
of mixed use net lettable space of which 68% is warehouse, 29% is
office and 3% is other space. It has 118 parking spaces and sits on
a total plot size of 18,500 sqm. The property is located 15 km
north of Hamburg city centre and 4.5 km north of Hamburg
International Airport.
The asset is 100% let to 12 tenants at an average rate per sqm
of EUR4.99, with a WALT of 3.2 years and total gross rental income
of EUR783,000 per annum. This acquisition complements the strategy
to establish a cluster of properties in and around the port city of
Hamburg, following the decision to exit from Bremen with the sale
of EUR25.6 million of assets there in the financial year ended 31
March 2019. The Norderstedt site expands Sirius's portfolio in
Hamburg to four business parks and most importantly gives Sirius a
presence in the north of Hamburg, with good access to Hamburg
International Airport.
Commenting on this acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "This is another good
acquisition within the Greater Hamburg Metropolitan area,
increasing the total number of assets within the region to four
with a total lettable area of more than 95,000 sqm. This
transaction at an EPRA net initial yield of 7.6% demonstrates
Sirius' ability to access good quality high yielding assets in and
around the 7 key cities in Germany."
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/+ 44 (0)7836 734 625
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 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.
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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