Sirius Real Estate Limited Acquisition (9944J)
04 July 2017 - 4:00PM
UK Regulatory
TIDMSRE
RNS Number : 9944J
Sirius Real Estate Limited
04 July 2017
The Company considers this announcement to contain inside
information which is disclosed in accordance with the Market Abuse
Regulation
4 July 2017
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Update on Acquisitions
Sirius Real Estate, a leading operator of branded business parks
providing conventional space and flexible workspace in Germany, is
pleased to announce the completion of the acquisition of two
properties for a combined total acquisition cost of EUR24.5
million.
On 1 July 2017, the Group completed the acquisition of
Berlin-Mahlsdorf II. The property is a mixed used building, in a
commercial area 15 km east of the centre of Berlin and adjacent to
an existing Sirius site in Berlin-Mahlsdorf. The site offers 12,826
square metres of gross lettable space, of which 68% is office
space, 18% is retail space and 14% is warehouse space. The building
is currently 62.2% occupied, is let to 19 tenants producing an
annual income of EUR0.5 million and has a remaining weighted
average lease term of 6.1 years. The demand and take-up of the
vacancy in Sirius's adjacent site has been high and the site is
quickly approaching full occupancy, which is encouraging for the
prospects of the new site. The property was acquired for EUR6.4
million including acquisition costs.
Also, on 1 July 2017, the Group completed the acquisition of
Grasbrunn. The site is located in a well-developed commercial area
close to Munich and comprises four office buildings with a gross
lettable area of 14,791 square metres. Currently the property is
only 3.5% occupied (let to one tenant), producing an annual income
of EUR0.1 million with a remaining lease term of 1.7 years. This
acquisition provides Sirius with an excellent opportunity to
increase the value of the asset through investing into and letting
up the vacant space for which the Group's marketing team has
already registered significant tenant interest. The property was
acquired for EUR18.1 million including acquisition costs.
Funding for these transactions will come from the proceeds
received from the recent disposals of mature assets.
Andrew Coombs Chief Executive Officer of Sirius Real Estate,
said,
"It is pleasing to be able to recycle the equity released from
our recent disposals into these two excellent assets with such
strong future potential. Each site is well located and provides
scope for us to increase passing rents and capital values. We have
excellent understanding of both local markets and know the types of
space that will appeal there. We look forward to incorporating
these into the Group's portfolio."
For further information, please contact:
Sirius Real Estate +49 (0)30 285010110
Andrew Coombs, CEO
Alistair Marks, CFO
Novella +44 (0)20 3151 7008
Tim Robertson
Toby Andrews
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 risk adjusted 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, Sirius may consider their disposal
in order to recycle equity into assets which present greater
opportunity for the Group's asset management skills.
For more information, please visit:
www.sirius-real-estate.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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