Sirius Real Estate Limited Sirius acquires business park in Mannheim (6010C)
02 October 2018 - 4:00PM
UK Regulatory
TIDMSRE
RNS Number : 6010C
Sirius Real Estate Limited
02 October 2018
2 October 2018
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius completes acquisition of business park in Mannheim
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, has completed the acquisition of a business park in the
northeast of Mannheim in South West Germany, for EUR9.62 million,
reflecting an EPRA net initial yield of 6.0%.
The acquisition was funded using a combination of capital raised
from the placing in March 2018 and proceeds from asset disposals.
With a gross lettable area of 15,000 sqm comprising office and
warehouse space, the park is currently 68.9% leased to 57 tenants
producing annual net operating income of EUR576,000. The weighted
average lease expiry is 1.7 years.
The business park is well located in a strong commercial area on
Weinheimer Strasse, six kilometres from the city centre and five
kilometres from our other site in Mannheim, Sirius Business Park
Mannheim. The new park is currently let to a broad range of
businesses, including: McFit Global Group, one of the largest
fitness centre chains in Europe; DEKRA Akademie, a training
institute; and Lapis Drucktechnologie, a manufacturer of printers
and laminators.
In addition to the acquisitions already completed this year
totalling EUR75.5 million, the Company has entered into exclusivity
to acquire a further EUR59.7 million of assets and is close to
completing the deployment of the EUR100 million of acquisition
capability it communicated to shareholders in the year-end
results.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate,
said: "Located on a large plot with a short weighted average lease
length in an area where rents have been rising over the past five
years, our second business park in Mannheim is an exciting
opportunity for Sirius to enhance income and overall value."
"This acquisition plays to the strengths of our integrated
business model and track record of achieving efficiencies at sites
we acquire in and around markets where we already have existing
business parks."
For further information:
Sirius Real Estate
Andrew Coombs, CEO
Alistair Marks, CFO
+49 (0)30 285010110
Tavistock (financial PR)
Jeremy Carey
James Verstringhe
Kirsty Allan
+44 (0)20 7920 3150
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 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
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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END
ACQEAKEFEFNPFFF
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