Sirius Real Estate Limited Sirius completes Wuppertal business park sale (0440V)
April 03 2023 - 2:00AM
UK Regulatory
TIDMSRE
RNS Number : 0440V
Sirius Real Estate Limited
03 April 2023
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
3 April 2023
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS COMPLETES WUPPERTAL BUSINESS PARK SALE AT PREMIUM TO BOOK
VALUE
25% combined premium to book value achieved on six sales during
last 12 months
Sirius Real Estate, the leading owner and operator of branded
business and industrial parks providing conventional space and
flexible workspace in Germany and the U.K., announces that it has
completed the disposals of two assets for a combined total of EUR
12.2 million, representing an average NIY of
c. 4.1%.
The most recent disposal, which completed on 1 April 2023, was
achieved at a 5.3% premium to book value (30 September 2022: EUR8.3
million) and comprised a c.15,000 sqm (162,000 sq ft) mixed-use
mature business park in Wuppertal, in North Rhine Westphalia,
Germany. Originally acquired by Sirius in 2007 and sold for EUR8.8
million, the property offered office, warehouse and production as
well as workshop space and was approximately 80% let.
This disposal follows the EUR3.4 million (GBP3.0 million) sale
at book value (as at 30 September 2022) of a c.82,000 sq ft (7,620
sqm) vacant office building in Ipswich, U.K., which completed in
December 2022.
The Company has disposed of six assets in the last 12 months
(including the sale of two non-income producing land parcels in
Germany) for a total sales price of EUR45.7 million compared with a
book value of EUR36.7 million, representing a 25% aggregate premium
to the last book value prior to each sale. Each disposal was
achieved at or above book value, with the proceeds being invested
in the acquisition of three new sites in Germany for a total
consideration of EUR44.6 million, of which EUR43.7 million was
transacted in the second half of 2022. The three new sites are now
generating higher revenues than the income contributed by the
assets disposed of earlier in the year. The new sites offer a
number of value add accretive asset management opportunities for
the Company to unlock through its platform, in particular, the
opportunity of leasing up empty space to increase rental
income.
Commenting on the transactions, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: "The strategic disposal of
these assets at or above book value during a challenging market
underpins the strength of our portfolio. This is based on both the
historically higher yields at which our portfolio is valued,
relative to many other parts of the sector, which we believe
provide it with a higher degree of insulation when real estate
values come under pressure, as well as our ability to offset this
further by driving inflationary income growth through our asset
management platform. It also demonstrates our ability to
crystallise returns from mature assets, which can then be recycled
into investing into new opportunities within our portfolio where we
see an opportunity to create value."
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 / Sebastian
Duran de Huerta
+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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