SIRIUS REAL ESTATE
LIMITED
(Incorporated
in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
20 June 2024
Sirius Real Estate
Limited
("Sirius Real Estate", "Sirius", the
"Company" or the "Group")
Sirius Real Estate completes on c. £31
million of acquisitions and disposes of two assets in the
U.K.
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.,
has completed on the acquisitions of two industrial assets in the
U.K., in Banbury, South East England, and Wembley, for just over
£31 million, representing a 9.2% net initial yield ("NIY")
including acquisition costs.
The acquisitions will add more than 492,000 sq
ft of light industrial space to the Group's U.K. portfolio, and
have been made using the proceeds of the recent Maintal disposal,
which was sold at a gross yield of 6% for €40.1 million in March
2024.
The Banbury acquisition comprises the c.
473,000 sq ft Beaumont Industrial Estate, which
has exchanged for £25 million (excluding acquisition costs),
reflecting a NIY of 9.1%. The freehold asset, which is fully let to
two tenants on Full Repairing and Insuring leases, produces a net
operating income of £2.4 million per annum at an average rate of
£5.15 psf, with both leases expiring in July 2027. Both tenants are
expected to extend their leases given the significant investment in
production equipment on site by each tenant.
The second asset comprises a light industrial
multi-let building in Wembley, which has exchanged for just under
£6.3 million (excluding acquisition costs) reflecting a NIY of
9.3%. The property is freehold and spans 19,145 sq ft of lettable
space. At almost 100% occupancy, the asset currently generates a
net operating income of £624,000. Privately owned and operated, and
situated at the northern end of Water Road, approximately 6 miles
west of Central London, the site is strategically located to
complement a trio of properties that the Company recently acquired
in Islington. The current owner purchased the vacant property three
years ago and converted the building into 65 workspaces targeting
SMEs.
Both of the assets are located in highly
desirable locations and benefit from good transport networks and
connectivity, with the Wembley asset located within 5 miles of
Bizspace in Perivale, enabling the Company to leverage a number of
operational synergies alongside its local market
expertise.
Sirius has identified a number of opportunities
to drive value through the Banbury and Wembley assets by utilising
its asset management platform to improve occupancy, income and
service charge recovery. Both sites fall within the Company's
strategy of purchasing primarily industrial assets, and will allow
Sirius to continue its asset recycling programme.
Separately, the Company announces that it has
notarised the disposals of two sub scale assets located in
Hartlepool and Letchworth, U.K., for a combined total of £1.9
million. The assets, which comprise just over 60,500 sq ft of
space, were sold at a combined 2.7% premium to the last reported
book value and were both deemed non-core to the business going
forwards.
Andrew Coombs,
Chief Executive Officer of Sirius Real Estate,
commented: "These acquisitions present the
Company with a number of value-add opportunities to utilise the
Sirius platform to grow income and value across two strategic
locations in the U.K., including one in which we already have an
established presence. Additionally, the strategic disposal of two
non-core U.K. sites, which when combined, were achieved at a modest
premium to book value, allows us to crystallise returns from these
assets which we will look to recycle into sites with larger scale
and more opportunity."
"We are continuing to make good progress on our
acquisition pipeline, following on from six months of
active investments in both Germany and the U.K.. The
Company's bond tap of its 1.75% corporate bond due in November
2028, alongside advanced discussions on additional
opportunities, leaves us well funded and well placed to support the
further long-term growth of the Group."
For further
information:
Sirius Real
Estate
Andrew Coombs, CEO / Chris Bowman,
CFO
+49 (0) 30 285 010 110
FTI
Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney/ 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 U.K. As of 31 March 2024, the
Group's portfolio comprised 142 assets let to 9,654 tenants with a
total book value of over €2.1 billion, generating a total
annualised rent roll of €188.7 million. Sirius also holds a 35%
stake in Titanium, its €350+ 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 and BizSpace names 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 refinance or dispose of assets selectively 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.
For more information, please
visit: www.sirius-real-estate.com
Follow us on LinkedIn
at https://www.linkedin.com/company/siriusrealestate/
Follow us on X (Twitter) at
@SiriusRE
JSE Sponsor
PSG Capital