REG - Sirius Real Estate - Sirius agrees €43 million of German transactions

Sirius Real EstateAnnouncement

30/05/2025 07:00

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RNS Number : 6927K  Sirius Real Estate Limited  30 May 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

 

30 May 2025

 

Sirius Real Estate Limited

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

 

Sirius Real Estate agrees €43 million of German transactions with Lübeck
acquisition and Pfungstadt disposal

 

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 notarised its first acquisition in Lübeck, north
Germany, having agreed to purchase a multi-let business park for €12.67
million (total acquisition costs) representing a 7.9% EPRA Net Initial Yield.
The Company has also agreed the sale of a business park in Pfungstadt on the
outskirts of Frankfurt for €30 million, representing an approximate 9%
premium to book value and representing an EPRA Net Initial Yield of 6.8%.

 

Lübeck business park sits on a 21,650 sqm plot and offers 14,810 sqm of
lettable space comprising 67% production and warehouse facilities, with the
balance dedicated to office. The park is 88% let to a range of businesses, has
a weighted average lease expiry (WALE) of 4.9 years and produces a current
rent roll of €1.05 million per annum. A further lease has already been
agreed by Sirius and the current owner with an energy and mobility solutions
business, that will take occupancy to above 95% when it completes in August
and increase the annual rent roll to €1.13 million.

 

The existing tenant base is well-diversified, comprising established companies
from a range of sectors, with three businesses in medical diagnostics,
industrial manufacturing and food processing respectively, accounting for
72.1% of rental income. These large tenants are complemented by a number of
smaller and medium sized occupiers.

 

The business park is well located in Lübeck's main commercial area, a city
with a population of around 220,000 and the second largest in the federal
state of Schleswig-Holstein.  In close proximity to the A1 autobahn, one of
Germany's main motorways, it is approximately one hour from Hamburg, where the
Company has around 92,000 sqm of space across four business parks. Lübeck is
also home to Germany's largest Baltic Sea port, handling over 25 million
tonnes of cargo annually. It offers regular ferry and freight links to Sweden,
Finland, and the Baltic states.

 

The city will also benefit from a €7.5 billion government infrastructure
project. A 17.6 km tunnel beneath the Baltic Sea, set for completion in 2029,
will bring Copenhagen within an hour's drive of Lübeck. In addition, 88 km of
new railway is being built between Lübeck and the Danish border via the
tunnel. This will further integrate Lübeck into the trans-European transport
network and improve access to northern markets.

 

Sirius's multi-tenanted park in Pfungstadt has been notarised for sale to
another real estate operator for €30 million, a 9% premium to book value and
representing an EPRA Net Initial Yield of 6.8%. Located 50 km south of
Frankfurt in the state of Hesse, the park has 33,452 sqm of lettable space
which is 89% occupied by over 100 tenants. The Company acquired the park in
July 2008 for €14.5 million (total acquisition costs). This sale is in line
with Sirius's strategy of recycling mature assets that have limited potential
for future value creation and allows the Group to reinvest the proceeds in
more value-accretive opportunities. The transaction is expected to complete in
the final quarter of the current financial year.

 

Full Year Results

 

As a reminder, Sirius will announce results for the financial year ended 31
March 2025 on Monday, 2 June 2025, and will be hosting an accompanying
in-person and a virtual webinar presentation for analysts and investors.
Please use the contact email below if you wish to attend.

 

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented:
"These two transactions further progress our strategy of crystallising value
from the sale of mature assets such as Pfungstadt and recycling capital into
acquisitions where we have identified an opportunity to add value through our
platform. In Lübeck we have acquired a well-located business park that
generates strong cashflows from a diversified tenant base, comprising
established companies from a range of sectors. Lübeck is a city that is not
only a major trade and transport hub, served by one of Germany's busiest
ports, but it is also the beneficiary of a significant infrastructure project
that will link it directly to Copenhagen and which is expected to bolster the
local economy and drive demand for commercial space. Our strong balance sheet
means we are well placed to continue to source and execute acquisitions from
our pipeline at this opportune time 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 / Ellie Sweeney / James McEwan

+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 30 September 2024, the
Group's owned portfolio comprised 145 assets let to 10,025 tenants with a
total book value of €2.4 billion, generating a total annualised rent roll of
€214 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 at @SiriusRE

 

JSE Sponsor:  PSG Capital

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