Sirius Real Estate Limited SIRIUS TO ACQUIRE NUREMBERG BUSINESS PARK (9445G)
November 30 2020 - 7:30AM
UK Regulatory
TIDMSRE
RNS Number : 9445G
Sirius Real Estate Limited
30 November 2020
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
30 November 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS TO ACQUIRE NUREMBERG BUSINESS AND INDUSTRIAL PARK
Sirius Real Estate, the leading owner and operator of branded
business and industrial parks providing conventional space and
flexible workspace in Germany, announces that it has notarised the
acquisition of a multi-tenanted business park in Nuremberg for a
total acquisition cost of EUR13.7 million, reflecting an EPRA net
initial yield of 7.1%. The purchase will be funded from existing
cash resources, with completion expected in January 2021.
Sirius is acquiring the asset from a manufacturer of component
parts for the European motorcycle and scooter market. Built in
1993, the asset has 13,600 sqm of gross lettable area and primarily
comprises manufacturing space (61%), as well as office (24%),
warehouse/logistics (11%) and other uses (4%). There are 138 car
parking spaces on site.
The business park is currently 91% let to a mix of SME tenants
at an average rent of EUR7.36 per sqm with a weighted average lease
length of 4 years and produces a total annualised rental income of
circa EUR1.1 million.
The park offers Sirius the opportunity to utilise its platform
to improve occupancy and rental rates as part of its asset
management plans for the asset.
The park is situated in a well-developed commercial area of
Nuremberg which, with a population of 520,000, is Bavaria's second
and one of Germany's largest cities. It lies around 4.5km north of
the city centre and benefits from easy access to public transport
and the A73 motorway.
The Company held total cash balances in excess of EUR110 million
at 30 November 2020 and, as a result, has significant further
acquisition firepower available.
Commenting on the acquisition, Andrew Coombs, Chief Executive
Officer of Sirius Real Estate, said: " This is a well-located asset
acquired on an attractive yield, where we see potential to add
value through our asset management initiatives. Nuremberg has a
strong and diverse SME sector of which Sirius has good knowledge
having owned an asset in the city for over 10 years. We continue to
have significant resources to execute our strong pipeline of future
acquisition opportunities around Germany's key cities, for both our
own portfolio and our Titanium joint venture."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / Talia Jessener
(+44) 020 3727 1000
SiriusRealEstate@fticonsulting.com
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 JSE Limited. 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.
Sirius also has a venture with clients represented by AXA
Investment Managers - Real Assets. Titanium was formed through the
acquisition by AXA Investment Managers - Real Assets, on behalf of
its clients, from Sirius, of a 65% stake in five business parks
across Germany. Sirius retained the remaining 35%. The venture
seeks to grow primarily through the acquisition of larger
stabilised business park assets and portfolios of assets with
strong tenant profiles and occupancy. As well as its equity
interest, Sirius acts as operator of the assets in the venture, on
a fee basis. Sirius will continue to grow its wholly owned
portfolio through acquisitions of more opportunistic assets, where
it can capitalise on its asset management expertise to maximise
utilisation of the space, grow occupancy and improve quality of the
tenants. The strategies have been clearly defined so that the
venture does not conflict with Sirius's existing business.
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQEAAFEDFEEFFA
(END) Dow Jones Newswires
November 30, 2020 07:30 ET (12:30 GMT)
Sirius Real Estate Ld (LSE:SRE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Sirius Real Estate Ld (LSE:SRE)
Historical Stock Chart
From Jul 2023 to Jul 2024