Sirius Real Estate Limited Acquisition update (2165Y)
04 December 2017 - 6:00PM
UK Regulatory
TIDMSRE
RNS Number : 2165Y
Sirius Real Estate Limited
04 December 2017
The Company considers this announcement to contain inside
information which is disclosed in accordance with the Market Abuse
Regulation
4 December 2017
Sirius Real Estate Limited
("Sirius Real Estate" or the "Company")
Completion of Acquisition in Hamburg for EUR8.4m
and completion of a Land Sale in Berlin for EUR0.95m
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, is pleased to announce the completion of an acquisition
for EUR8.4 million and the sale of non-income producing land in
Berlin for EUR0.95 million. Dates of notarisation and the details
of the two transactions were announced with the Company's trading
statement on 9 October 2017.
In summary:
-- The Hamburg-Hummelsbüttel acquisition for EUR8.4 million
(including acquisition costs) is an office building and has 11,223
sqm of lettable space and is currently 100% vacant providing
substantial value-add potential.
-- The sale of 5,000 sqm of non-income producing land on the
outskirts of the Tempelhof business park in Berlin for EUR0.95
million, represents a significant premium to book value and a major
opportunity for this site to re-invest the proceeds into accretive
new projects.
Andrew Coombs Chief Executive Officer of Sirius Real Estate,
said:
"These are two good transactions for Sirius and in the case of
the Hamburg acquisition, it provides excellent scope to use our
intensive asset management skills to add recurring income and
increase capital values. Additionally, Hamburg is a new and key
market for us, and with this site and another currently under
notarisation we are well positioned to make a strong entry.
The land sale at a significant premium to book value reflects
our strategy to maximise shareholder returns at the asset level by
crystallising profits on non-income producing assets and finding
the most accretive sources to fund our capex programme. The
proceeds from this sale will be invested to convert suboptimal
space into high-quality offices on the same business park from
which we expect to generate a high return."
For further information:
Sirius Real Estate
Andrew Coombs, CEO
Alistair Marks, CFO +49 (0)30 285010110
Novella
Tim Robertson
Toby Andrews +44 (0)20 3151 7008
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.
For more information, please visit:
www.sirius-real-estate.com
Images of the Sirius property portfolio are available from:
https://www.flickr.com/photos/sirius_re/
LEI: 213800NURUF5W8QSK566
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQBSBDDXUGBGRX
(END) Dow Jones Newswires
December 04, 2017 02:00 ET (07:00 GMT)
Sirius Real Estate Ld (LSE:SRE)
Historical Stock Chart
From Apr 2024 to May 2024
Sirius Real Estate Ld (LSE:SRE)
Historical Stock Chart
From May 2023 to May 2024