TIDMSRE
RNS Number : 7726Q
Sirius Real Estate Limited
02 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
2 March 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS COMPLETES ACQUISITION OF 8,800 SQM STUTTGART BUSINESS
PARK FOR EUR9.2 MILLION
Acquisition immediately adjacent to Sirius' existing asset at
Fellbach, near Stuttgart, providing a range of operational and
asset management opportunities
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 completed the
acquisition of a 8,800 sqm mixed-use business park in Fellbach,
near Stuttgart, for a total acquisition cost of EUR9.2 million,
reflecting an EPRA net initial yield of 6.0%.
This investment follows the Company's acquisition in August 2018
of a business park located in Fellbach where, as a result of the
application of a range of asset management initiatives, occupancy
has increased to in excess of 90% from 79% when first acquired. The
new asset sits immediately adjacent to the Company's existing site,
creating an enlarged business park comprising over 36,000 sqm of
gross lettable area. Sirius acquired the business park from a local
family office using existing cash resources.
The park is situated in a well-developed commercial area 7.8 km
to the north-west of Stuttgart and benefits from easy access to
public transport and the major B14 motorway. Built in the 1970's,
the new asset has 8,800 sqm of gross lettable area and 200 parking
spaces, and comprises a range of uses including office space (62%),
warehouse/logistics (32%) and other space (6%).
The business park is currently 94.6% let to Daimler AG as the
single tenant, at an average rent of EUR7.04 per sqm, producing a
total annualised rental income of approximately EUR730,000 .
Daimler is expected to vacate the office element of the property by
the end of June 2021, and the warehouse element of the property by
December 2021, after which Sirius will seek to implement a range of
asset management initiatives including the upgrade of space in
order to capture local market demand for office and warehouse
space.
Commenting on the acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said:
"This high-quality asset deepens our exposure to a commercial
market in which we already have extensive experience. The
acquisition will provide a number of compelling operational
synergies and widens our range of asset management options
particularly when considered alongside our existing adjacent
Fellbach business park. With the major tenant moving out shortly
after completion our focus is on growing income through the capture
of reversion and reduction in service charge leakage. We continue
to benefit from a strong balance sheet allowing us to maintain our
strategy of acquisitive growth in and around Germany's key
cities."
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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