TIDMSRE
RNS Number : 7317B
Sirius Real Estate Limited
04 October 2022
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
4 October 2022
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
ACQUISITIONS AND DISPOSALS UPDATE
Sirius Real Estate, the leading owner and operator of branded
business and industrial parks providing conventional space and
flexible workspace in Germany and the UK, announces further
progress in its asset recycling programme with the completion of
three acquisitions in Germany for EUR44.6 million in aggregate.
These acquisitions were all notarised prior to the end of June and
have been predominantly funded using capital recycled from three
strategic disposals in Germany and the UK for a combined EUR33.6
million.
The disposals have been made at a premium to book value while
Sirius has undertaken the acquisitions having identified a number
of opportunities to drive future income and valuation growth
through its asset management platform.
The three disposals were of assets that offered limited further
growth opportunities due to location and/or condition, and
comprised:
-- The completion of the previously announced EUR13.75 million
sale of the Company's asset in Magdeburg, Germany, which
represented a 5.5% premium to the book value at the time of
notarisation .
-- Completion of the previously announced GBP16.0 million sale
of a BizSpace business park in Camberwell, London, at 94% above the
asset's valuation at the time of Sirius' acquisition of
BizSpace.
-- The notarisation of a EUR1.0 million 3,200 sqm non-income
producing land plot in Heiligenhaus, Germany which had a book value
of EUR250,000 at the time of notarisation. This asset is being sold
to a supermarket chain as part of its expansion plans, with the
transaction expected to complete in January 2023.
The disposals generated an annualised EUR1.7 million of rental
income and EUR1.4 million of net operating profit, while the three
new acquisitions totalling EUR44.6 million currently generate a
combined total of EUR2.3 million of rental income and EUR1.6
million of net operating profit annually. The three acquired assets
have a combined occupancy of just 54% and offer a range of avenues
for Sirius to leverage its significant value creation expertise to
grow rental income. The acquired assets comprise:
-- A EUR39.8 million (including costs) mixed-use property in
Düsseldorf, Germany, situated 2.6 km from the city's international
airport. The property comprises mainly office and warehouse/light
industrial space and is 55% occupied, offering good value add
potential.
-- A EUR3.9 million (including costs) primarily warehouse asset
located in a well-developed commercial area in Dreieich, Germany,
that is strategically adjacent to an existing property owned by
Sirius. We intend to convert the property into a self-storage
facility, adding to our existing SmartSpace Self-Storage brand that
now exists in 32 locations across Germany
-- A EUR0.9 million (including costs) small 239 sqm vacant
office building in Potsdam. The property is placed strategically at
the entrance to one of the Company's existing sites and directly
adjacent to the world famous Babelsberg Film Studios.
Commenting on the transactions, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said : "The strategic disposal of
these mature assets at a premium to their book value demonstrates
our continued ability to drive value within our portfolio and then
crystallise returns, which can be recycled into new opportunities
where we can grow operating income through our asset management
platform.
We have identified a number of asset management initiatives
within the three newly acquired properties which will allow us to
grow rental income and occupancy by leasing into markets where we
see continued strong demand for our products.
Given the current uncertainty in the market, we now expect to
slow our acquisition pipeline, however we are continuing to monitor
numerous acquisition opportunities so that we remain poised to
execute transactions at the appropriate time in the future. We will
also continue to seek to dispose of non-core or mature assets as
and when we feel the timing is right."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CIO and Interim CFO
+49 (0) 30 285 010 110
FTI Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia Shirion
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the main and premium
market of the London Stock Exchange and the main board of the JSE
Limited. It is a leading owner and operator of branded business and
industrial parks providing conventional space and flexible
workspace in Germany and the UK. As of 31 March 2022, and following
the acquisition of BizSpace, a leading UK provider of regional
flexible workspace, the group's portfolio comprised 140 assets let
to 9,452 tenants with a total book value of over EUR2 billion,
generating a total annualised rent roll of EUR167.1 million. Sirius
also holds a 35% stake in Titanium, its EUR350+ million
German-focused joint venture with clients of AXA IM Alts.
The Company's strategy centres on acquiring business parks at
attractive yields and integrating them into its network of sites -
both under the Sirius name and alongside a range of branded
products. The business then seeks to reconfigure and upgrade
existing and vacant space to appeal to the local market via
intensive asset management and investment and may then choose to
selectively refinance or dispose of assets once they meet maturity,
to release capital for new investment. This active approach allows
the Company to generate attractive returns for shareholders through
growing rental income, improving cost recoveries and capital
values, and enhancing returns through securing efficient financing
terms. The Company has a strong track record for growing its income
and has delivered like-for-like rent roll growth in excess of 5%
for the last eight consecutive years.
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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