REG - Sirius Real Estate - Acquisition in Geilenkirchen and Disposal of Asset

Sirius Real EstateAnnouncement

26/06/2025 07:00

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RNS Number : 4479O  Sirius Real Estate Limited  26 June 2025

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

26 June 2025

Sirius Real Estate Limited

("Sirius Real Estate", "Sirius", the "Company" or the "Group")

 

Acquisition in Geilenkirchen, Germany and Disposal of Non-Core UK Asset

Sirius Real Estate, the leading operator of branded business and industrial
parks providing conventional space and flexible workspace in Germany and the
UK, has continued to execute on its strong acquisition pipeline, having
notarised the purchase of a light industrial property in Geilenkirchen,
Germany, for a total consideration of €12.9 million.

The asset was acquired by way of a sale-and-leaseback transaction, with a
precision engineering business that specialises in processing sheet metal
using laser technology, which has entered into a  triple net lease on the
entire property.  The acquisition reflects a net initial yield of 9.3% on a
property that is less than 25 years old.

The property is in a strategic location in Geilenkirchen, west of Düsseldorf,
33km from Sirius' existing site in Aachen. In close proximity to the Belgian
and Dutch borders, the area is known as the Euregio Maas-Rhine and is one of
Europe's most dynamic economic regions, benefitting from a strong industrial
base. Geilenkirchen is also home to a key NATO airbase, further contributing
to the area's economic stability.

The acquisition is in line with Sirius' strategy of acquiring well-located
assets with secure income streams and value-add potential, at attractive
yields.

UK Disposal

As part of its ongoing UK portfolio optimisation strategy, Sirius has also
exchanged contracts for the disposal of a small non-core asset in Huddersfield
to a private individual for a total consideration of £1.55 million. The
transaction was concluded at a 7% premium to the asset's most recent book
value and reflects a disposal yield of 8.1%, assuming standard purchaser
costs. Proceeds from the sale will be redeployed into opportunities within the
Group's portfolio, in line with Sirius' capital allocation strategy.

Andrew Coombs, CEO, commented: "This acquisition provides us with a
well-located asset at an attractive yield and further strengthens our
footprint in the Euregio Maas-Rhine industrial region. With Geilenkirchen
being home to a key NATO airbase, it is also in line with our ambition of
ensuring that Sirius' portfolio is well placed to benefit from an increased
focus on defence investment, particularly following the news earlier this week
that Germany's defence spending is now heading towards a new target of 5% of
GDP.  Following on from the Reinsberg and Monchengladbach acquisitions
announced earlier this year, this acquisition presented Sirius with another
sale and leaseback opportunity in a strong location at an attractive yield.
The purchase helps another business owner to extract value from its property
assets while maintaining operations on site, while delivering strong income
returns for the Company."

"Following last year's equity fundraise and bond issuances, as well as our
recently announced new €150 million unsecured revolving credit facility, we
have the flexibility and resources to continue to make accretive acquisitions
in Germany and the UK at this opportune point in the market cycle."

ENDS

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Chris Bowman, CFO

+44 (0) 20 3059 0855

 

FTI Consulting (Financial PR)

Richard Sunderland / Giles Barrie / James McEwan / Ellie Smith

+44 (0) 20 3727 1000

SiriusRealEstate@fticonsulting.com

 

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the equity shares (commercial
companies) category of the London Stock Exchange and the premium segment of
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 2025, the Group's
portfolio comprised 145 assets let to 10,477 tenants with a total book value
of over €2.5 billion, generating a total annualised rent roll of €221.4
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 (http://www.sirius-real-estate.com/)

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
(https://www.linkedin.com/company/siriusrealestate/) or on X (Twitter) at
@SiriusRE

JSE Sponsor.  PSG Capital

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