RCS - Sirius Real Estate - 11,000 sqm of lettings and update on pipeline

Sirius Real EstateAnnouncement

13/09/2018 07:05

RNS Number : 6118A
Sirius Real Estate Limited
13 September 2018
 


13 September 2018
 
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
 
Sirius announces 11,000 sqm of lettings and updates on acquisition pipeline
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announces the completion of three large new lettings, a significant renewal and provides an update on the acquisition pipeline.
Lettings
A leading German sports car manufacturer based in Stuttgart, and new tenant for Sirius, has signed a five-year lease for the entire 6,800 sqm office building at Sirius Business Park Stuttgart-Weilimdorf, completing the asset management plan for the site. The building was acquired in 2015 on the understanding that one of the tenants with three years remaining on its lease intended to vacate, which created an opportunity to find a new occupier and maintain the building's full occupancy at a higher rent. While this new tenant increases Sirius' exposure to the automotive sector, the portfolio's total direct exposure to the sector remains less than 5%.
A division of the Berlin government has signed a 10-year lease at Sirius Business Park Berlin Tempelhof on 2,200 sqm of office space at a rent of €14.35 per sqm. This transaction highlights the quality of Sirius's refurbished office space in Tempelhof, as well as the strength of demand for offices in and around the city of Berlin. It also completes the letting of the 7,600 sqm building, which Sirius acquired in a derelict state and has subsequently transformed into high quality office space.
CARE Deutschland-Luxemburg, part of the leading global humanitarian charity, has taken a ten-year lease on 1,950 sqm of offices at Sirius Business Park Bonn-Siemensstrasse.
The Company is at an advanced stage of negotiations with Daimler AG, the owner of Mercedes- Benz, for a five-year extension to its lease on circa. 40,000 sqm of office, production and storage space at Sirius Technologiepark Kirchheim. Daimler has been a tenant here for many years, but always on short leases, so this new lease is a strong indication that our Kirchheim site will be strategically important for their operations for many years to come.
Acquisition pipeline
Overall the Company remains well advanced in the deployment of the €100 million of acquisition capability it communicated to shareholders in its year-end results. So far, it has committed €39.4 million into completing the acquisitions of business parks in Friedrichsdorf and Fellbach and has notarised a business park in Mannheim, which is expected to complete in October. In addition, the Company has entered into exclusivity to acquire another €59.7 million of assets.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "These lettings demonstrate the effectiveness of our asset management approach, which focuses on the mix of long-term stable income alongside high-yielding flexible income. We have secured some very well covenanted blue-chip and government tenants on long-term leases, which are expected to be earnings accretive for those business parks.
"Given the quality of these lettings and the current level of activity in our pipeline, we are optimistic about the potential to further enhance the value and income from our portfolio."
 
For further information:
Sirius Real Estate
Andrew Coombs, CEO
Alistair Marks, CFO
+49 (0)30 285010110
 
Tavistock (financial PR)
Jeremy Carey
James Verstringhe
+44 (0)20 7920 3150
siriusrealestate@tavistock.co.uk
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 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
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566
JSE Sponsor
PSG Capital
 




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