Sirius Real Estate Limited Acquisition update (6601P)
September 04 2017 - 2:00AM
UK Regulatory
TIDMSRE
RNS Number : 6601P
Sirius Real Estate Limited
04 September 2017
The Company considers this announcement to contain inside
information which is disclosed in accordance with the Market Abuse
Regulation
4 September 2017
Sirius Real Estate Limited
("Sirius Real Estate" or the "Company")
Update on Acquisitions and Disposals
and inclusion in the FTSE AllShare and SmallCap indices
Sirius Real Estate, the leading operator of branded business
parks providing conventional space and flexible workspace in
Germany, is pleased to announce the following update regarding the
completion of a EUR7.0m disposal of a mature asset and two property
acquisitions for EUR25.8m and its entry into the FTSE AllShare and
SmallCap indices.
On 31 August 2017, the Group completed two acquisitions and one
disposal as follows:
-- the acquisition of a property in Neuss, just outside
Dusseldorf, for total acquisition costs of EUR16.1m. This asset
comprises two office buildings which are 38.3% let with a net
lettable area of 18,258sqm, thereby providing significant income
and value creation potential through our asset management
platform.
-- the acquisition of a property in Neu-Isenburg, just outside
Frankfurt, for total acquisition costs of EUR9.7m. This asset
comprises a single office building which is currently 41.3% let
with a net lettable area of 7,996sqm. This also provides excellent
scope as a property with great opportunity for significant asset
management potential.
-- the sale of a property in Kiel for EUR7.0m, representing an
EPRA net initial yield of 7.4% (including acquisition costs). The
property is now considered mature having been turned around from a
loss making position to generating EUR0.56m of net operating income
and consists of a single office building plus a warehouse building
with occupancy having increased under Sirius from 19% to 92% on a
net lettable area of around 10,000 sqm.
Funding for the acquisitions will come from the proceeds of the
Company's disposals programme and the equity raise completed 28
July 2017.
In addition, Sirius Real Estate is pleased to announce that the
Company was included in the FTSE AllShare and SmallCap indices
following the FTSE index series quarterly review which took place
on Wednesday 30 August 2017.
Andrew Coombs Chief Executive Officer of Sirius Real Estate,
said:
"These transactions are good examples of our strategy to recycle
capital from mature assets like Kiel into opportunistic assets such
as Neuss and Neu-Isenburg, which are secondary locations of
Dusseldorf and Frankfurt, two markets we know well and where we are
currently experiencing extremely high demand for office space. We
are confident that there is significant potential to increase the
capital value and rental income streams from both of these sites
over the next three years. Following on from our move up to the
main market in March 2017, I am delighted that Sirius has qualified
for the FTSE AllShare and SmallCap indices and look forward to
seeing the benefits that come with these inclusions."
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
LEI: 213800NURUF5W8QSK566
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQBBGDCGGGBGRX
(END) Dow Jones Newswires
September 04, 2017 02:00 ET (06:00 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