REG - Sirius Real Estate - Completion of acquisition of BizSpace Group

Sirius Real EstateAnnouncement

15/11/2021 15:15

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RNS Number : 4301S  Sirius Real Estate Limited  15 November 2021

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

15 November 2021

Sirius Real Estate Limited

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

Completion of acquisition of BizSpace Group

 

Further to its announcements of 8 November 2021, Sirius Real Estate, the
leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany, is pleased to announce
that it has now completed the acquisition of Helix Investments Limited, the
holding company of the BizSpace business, for a cash consideration of c. £245
million, based on an enterprise value of £380 million (the "Acquisition").

 

BizSpace is a leading provider of regional flexible workspace, offering light
industrial, workshop, studio and out of town office units to a wide range of
businesses across the UK and the acquisition therefore provides Sirius with a
unique opportunity to enter with immediate scale an under-served new market
via a one-step acquisition of an established platform. It provides Sirius with
a high-quality portfolio, offering significant organic growth potential in
rental pricing in a UK market characterised by supply constraints. The
BizSpace business is also highly complementary to Sirius' existing platform,
allowing for meaningful operational and financial synergies to drive value
creation for Sirius shareholders.

 

The Acquisition has been financed through a combination of the Company's
existing cash resources and the issue and subsequent admission to trading on
the London and Johannesburg stock exchanges of 105,281,686 new Ordinary Shares
of the Company, which raised gross proceeds of c. £137 million. Sirius has
also assumed BizSpace's existing gross financial debt of c. £146 million.

 

Commenting on the transaction, Andrew Coombs, Chief Executive Officer of
Sirius Real Estate, said: "The completion of this acquisition marks a
significant step forward in the continued evolution and growth of Sirius as a
business. It provides us with our first expansion into a new geography via the
acquisition of a significant portfolio of assets and an established operating
platform, both of which we believe have huge potential. The success of our
capital raise was also a very positive endorsement both of this transaction
and our wider strategy for growth. We now look forward to working with the
BizSpace team towards our overriding goal of growing FFO and generating
sustainable and growing returns on behalf of shareholders."

 

Ends

 

Enquiries:

Sirius Real Estate

Andrew Coombs, CEO / Alistair Marks, CFO

Tel: +49 (0) 30 2850 10 110

 

FTI Consulting (Financial PR)

Richard Sunderland / Claire Turvey / Talia Jessener

Tel: +44 (0) 203 727 1000

SiriusRealEstate@fticonsulting.com (mailto:SabreRealEstate@fticonsulting.com)
 

 

NOTES TO EDITORS

About Sirius Real Estate Limited

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. It is a leading
operator of branded business parks providing conventional space and flexible
workspace in Germany. The Company's purpose is to create and manage optimal
workspaces that empower small and medium-sized businesses to grow, evolve and
thrive. Sirius seeks to unlock the potential of its people, its properties,
and the communities in which it operates, so that together we can create
sustainable impact, and long-term financial and social value.

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 IM Alts. Titanium
was formed through the acquisition by AXA IM Alts, 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' existing business.

For more information, please visit: www.Sirius-real-estate.com
(http://www.sabre-real-estate.com)

JSE Sponsor

PSG Capital

 

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