Sirius Real Estate Limited Completes acquisition of 2nd Bochum property (7503K)
02 September 2019 - 4:00PM
UK Regulatory
TIDMSRE
RNS Number : 7503K
Sirius Real Estate Limited
02 September 2019
02 September 2019
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius completes acquisition of second Bochum property
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, announces that it has completed the acquisition of an
office building adjacent to its Bochum Business Park, in Bochum, a
city in the Ruhr region of Germany. The property was bought for a
total consideration of EUR6.7 million including acquisition costs
reflecting an EPRA net initial yield of 5.5%. The acquisition,
notarised in July 2019, was settled in cash and funded using
proceeds from recent asset recycling activity. The vendor was
Häusser-Bau GmbH.
The property, constructed in 1970, provides 4,200 sqm of
lettable space (81% office space, 15% storage and 4% service space)
and 71 parking spaces on a total plot size of circa 3,300 sqm. It
is 100% let, producing an annual total income of circa EUR428,000
and annual net operating income of EUR370,000, reflecting a
weighted average rent of EUR8.00 per/sqm with a remaining WALT of
2.2 years. The principal tenant is ThyssenKrupp Bilstein, a
subsidiary of the giant ThyssenKrupp conglomerate which designs and
manufactures shock absorbers.
The property is directly adjacent to the Company's 56,000 sqm
Bochum Business Park, which was acquired for EUR25.7 million in
March 2019, together creating a combined value of more than EUR32.0
million. As a result of the proximity of the asset to this existing
site, the Company benefits from a wider range of asset management
options and operational synergies.
Bochum is located mid-way between Dortmund and Essen, in North
Rhine-Westphalia, the third-largest urban area in the European
Union. The property is well situated in Bochum-Hofstede, north of
the city centre and within walking distance of a U-Bahn with easy
access to the A40 and A43 motorways.
Commenting on the acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "Acquiring this property was a
logical next step following the success we have had with the Bochum
Business Park since its acquisition in March this year. Not only
does the acquisition of an adjacent property provide us with
additional asset management possibilities, as well as the
opportunity to realise operational synergies, but also offers us
marriage value and helps deliver on our strategy to increase the
average lot size of our assets. Following the completion of the
acquisition of Alzenau, notarised at EUR44.5 million in July, we
have already made a good start with this strategy".
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285010110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150
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 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.
In July 2019, Sirius completed on a joint venture with clients
represented by AXA Investment Managers - Real Assets in which AXA
acting on behalf of its clients, owns a 65% interest and Sirius
owns the balance of 35%. The JV is called Titanium. The JV was
initially formed by AXA acquiring, on behalf of its clients, from
Sirius a 65% stake in five SPVs through which it currently owns two
business parks located in Berlin (Berlin Borsig and Berlin
Tempelhof) and one in each of Mainz, Nurnberg and Bayreuth. The
business parks provide a combination of office, warehouse,
industrial and storage space. The implied property value of EUR168
million equates to a gross yield for the portfolio of 6.2% and
reflects a premium to the book value as at 30 September 2018 which
was EUR141.1 million. Total cash commitment from AXA IM - Real
Assets amounts to EUR43.9 million.
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
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