REG - Sirius Real Estate - Sirius acquires two business parks

Sirius Real EstateAnnouncement

Wed 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250806:nRSF1226Ua&default-theme=true

RNS Number : 1226U  Sirius Real Estate Limited  06 August 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

 

6 August 2025

Sirius Real Estate Limited

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

 

Sirius acquires business parks in Dresden, Germany and Bedford, UK

Sirius Real Estate, the leading owner and operator of branded business and
industrial parks providing conventional space and flexible workspace in
Germany and the UK, has notarised the acquisition of a business park in
Dresden, Germany for €23.4 million (including acquisition costs) and
completed on the acquisition of a business park in Bedford, UK, for £16.13
million (including acquisition costs). Both transactions were identified and
purchased off market.

The Dresden site is a 21,158 sqm light industrial park currently occupied by
the vendor who has entered into a 1-year sale and leaseback and is expected to
vacate thereafter. Sirius plans to convert the site into a multi-let
industrial park following the tenant's departure and will use the intervening
time to curate the optimal multi-let strategy. The site generates net
operating income of €2.1 million and has been acquired at an EPRA net
initial yield of 9.13% after acquisition costs.

The site will be Sirius' fourth in the Dresden area, alongside Klipphausen,
Reinsberg and MicroPolis.  Dresden is attracting significant inward
investment, particularly in the semiconductor sector, with construction of a
€10 billion manufacturing plant already underway by a consortium led by
Taiwan Semiconductor Manufacturing Company. This inward investment is
generating tenant demand for Sirius' existing sites in the region, with this
newly acquired site expected to attract similar levels of interest.

Bedford Heights is a 238,000 sq ft multi-let business park comprising
warehouse, leisure, studio and office space, with a three-acre car park. The
transaction reflects an EPRA net initial yield of 9.52% after acquisition
costs, and supports Sirius' broader strategy of targeting well-located,
income-generating assets with value-add potential at attractive yields. The
acquisition also aligns with Sirius' focus on the defence sector, with 36% of
the site let to tenants with a strong defence and military background.

The asset is 96% occupied, generating a net operating income of £1.54 million
and a WAULT of 6.05 years to expiry. The site's largest tenant, an electric
components manufacturer, occupies 33% of the space with a WAULT in excess of
10 years to expiry. Notably, 67% of tenants have lease events within two
years, presenting meaningful reversionary and asset management opportunities,
including potential for future multi-let industrial development.

The site is strategically located just one mile from Bedford town centre which
itself is 50 miles north of London and has strong connectivity via the M1 and
A1 motorways, as well as direct rail links to London, the Midlands, and the
North of England. The park is near the Company's existing sites in Sandy and
Milton Keynes allowing for operational synergies. Bedford is also the site of
a proposed Universal branded theme park, which is forecast to deliver £50
billion of economic benefit to the area over the next 20 years.

Sirius has also completed the previously announced disposal of a small
non-core asset in Huddersfield, UK to a private individual for a total
consideration of £1.55 million, reflecting a 7% premium to the asset's most
recent book value. Proceeds from the sale will be redeployed into
opportunities within the Group's portfolio, in line with Sirius' capital
allocation strategy.

So far in 2025, the Company has notarised to acquire or acquired approximately
€165 million of income-producing assets across the UK and Germany. This
includes the recently completed acquisition of a property in Lübeck, along
with earlier acquisitions in Munich, Reinsberg, Monchengladbach, Oldham and
Chalcroft.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented:
"These two latest acquisitions represent strong additions to our German and UK
portfolios, being immediately cash generative whilst benefitting from clear
value-add potential, and secured at attractive entry yields.

"The acquisition of Dresden business park strengthens our presence in a region
enjoying substantial inward investment, particularly in the high-growth
semiconductor sector. Bedford Heights also closely aligns with our strategic
focus on the defence sector, with over one-third of the current tenant base
operating in this space and further growth opportunities identified.

"Following last year's successful equity raise and bond issuances, along with
our recently secured €150 million unsecured revolving credit facility, we
are strongly capitalised and well-positioned to continue executing accretive
acquisitions across the UK and Germany, with these latest transactions a clear
demonstration of our sourcing capabilities."

 

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 Sweeney

+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 UK. 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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQSSIFAIEISEIA