REG - Sirius Real Estate - Disposal of Kassel business park

Sirius Real EstateAnnouncement

03/10/2023 07:00

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RNS Number : 4425O  Sirius Real Estate Limited  03 October 2023

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

03 October 2023

Sirius Real Estate Limited

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

Sirius Real Estate continues asset recycling programme with disposal of Kassel
business park 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 completed the disposal of a business park in Kassel,
in Germany's southwest Hesse region, for €7.3 million, representing a net
initial yield ("NIY") of 6.0%.

 

The disposal was achieved at an approximate 5% premium to book value (March
2023: €6.95 million). The asset, which is 92% let, comprises a total
lettable area of 8,342 sqm of industrial, office, logistics and other space
within a 16,217 sqm plot size.

 

The Company also announces that it has now completed the £9.5m acquisition of
two mixed use industrial assets for its BizSpace subsidiary in the U.K.,
exchange of which was announced on 27 July 2023. The two assets are located in
Liverpool and Barnsley with a combined area of 71,957 sq ft of predominantly
workshop space. The purchase price represents a NIY of 9.6% (total acquisition
cost).

 

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "Our
disposal of Kassel at a premium to book value has allowed us to capitalise on
demand for this high quality property.  The sale of this asset at a 6.0% NIY,
coupled with the completion of our acquisition of the properties in Liverpool
and Barnsley at a 9.6% NIY represents a good example of our strategy of
recycling capital from mature assets into those where we believe we can grow
income and value through our  operating platform. In the current market we
are focused on improving rental levels and providing tenants with the
flexibility and services they need. We see plenty of opportunities to continue
creating value through asset management across the BizSpace portfolio, as we
have successfully achieved through the Sirius platform with our German
assets."

 

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 / Sebastian Duran de Huerta

+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 UK. As of 31
March 2023, the Group's portfolio comprised 140 assets let to 9201 tenants
with a total book value of over €2 billion, generating a total annualised
rent roll of €178.3 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

 

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