SIRIUS REAL ESTATE
LIMITED
(Incorporated
in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
27 March 2024
Sirius Real Estate
Limited
("Sirius Real Estate", "Sirius", the
"Company" or the "Group")
Sirius Real Estate expands U.K.
portfolio with £48.25 million business park
acquisition
-Further asset recycling with the
completion of Maintal disposal at premium to book
value-
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 exchanged contracts on the acquisition of Vantage Point
Business Village, a multi-let business park in
Gloucestershire, for a total acquisition
cost of £48.25 million (€56.4 million), representing a
net initial yield at acquisition of 10.2%. The
acquisition has been made using the proceeds of the Company's £147
million capital raise, achieved last November.
The acquisition represents the first asset in
the U.K. and the fourth asset in total acquired by Sirius this
calendar year, following the purchases of business and industrial
parks in Köln, Göppingen and Klipphausen for approximately
€53.75 million in aggregate.
Through this purchase, Sirius will add more
than 1.5 million sq ft of space to its BizSpace portfolio, of which
over 1 million sq ft is industrial space.
The 60-acre business park at Mitcheldean was
renowned first for manufacturing Rank projection equipment then as
Rank Xerox's manufacturing hub between 1961 and 2003. It is 81%
occupied and offers a mixture of warehouse, production, storage,
conventional and serviced office space to over 70 companies across
119 units. Sirius has identified a number of opportunities to drive
value by utilising its asset management platform to improve
occupancy, income and service charge recovery. The
total acquisition cost includes a £1.25 million deferred element
which is conditional on certain events taking place within nine
months of completion.
As part of the acquisition, Sirius has also
acquired a PV solar business from the vendor which currently
supplies most of the electricity to the site from panels installed
on certain buildings, providing energy security and an attractive
income stream.
Situated in a highly desirable location on the
edge of The Forest of Dean, and close to a number of major cities
including Bristol to the South, Gloucester to the East and Cardiff
to the South West, the park benefits from good transport networks
and connectivity to the national motorway network via the A40 and
M50. Proximity to other Sirius sites, including
Gloucester Barnwood and Gloucester Morelands, will enable the
Company to leverage operational synergies alongside its local
market expertise.
Separately, the Company has
completed on the previously announced disposal of an industrial
park in Maintal, in Germany's southwest Hesse region, for €40.1
million (£34.3 million), representing a net initial yield of 5.7%.
The asset, which comprises 37,830 sqm of logistics, office and
industrial space, was sold at an approximate 6% premium to the last
reported book value at the time of notarisation. The sale aligns
well with Sirius' strategy of recycling capital from mature assets
into those where the Company believes it can grow income and value
through its operating platform.
Andrew Coombs,
Chief Executive Officer of Sirius Real Estate,
commented: "This sizeable strategic acquisition
is transformational for our U.K. BizSpace platform, and
increases its portfolio by over 1.5 million sq ft.
The 60-acre park generates
strong day-one cash flow from a stable, diversified tenant
base and offers various synergies with our existing assets in the
local area. It also presents a number of value creation
opportunities by driving both occupancy and rental
income.
"Additionally, the completion of
the Maintal disposal at a premium to book value allows us to
capitalise on demand for this high-quality property and continue to
crystallise returns from our mature portfolio. It also provides us
further flexibility to recycle capital into new opportunities
within our existing portfolio, as well as into our pipeline of
acquisitions, alongside the proceeds of November's £147 million
(€165 million) equity raise. We have now committed to over £135
million (€155 million) of acquisitions
since November and are continuing to actively seek future
opportunities where we see the chance to create value, leaving us
well placed to support the continued long-term growth of the
Group."
The Group looks forward to providing its
customary year-end trading update on 15 April 2024, following the
end of the Company's financial year.
For further
information:
Sirius Real
Estate
Andrew Coombs, CEO / Chris Bowman,
CFO
+49 (0) 30 285 010 110
FTI
Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia
Shirion / Millie James
+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 30 September 2023,
the Group's portfolio comprised 139 assets let to 9,248 tenants
with a total book value of over €2 billion, generating a total
annualised rent roll of €184.2 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
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