REG - Sirius Real Estate - Sirius agrees German business park acquisition

Sirius Real EstateAnnouncement

29/02/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240229:nRSc8553Ea&default-theme=true

RNS Number : 8553E  Sirius Real Estate Limited  29 February 2024

SIRIUS REAL ESTATE LIMITED

(Incorporated in Guernsey)

Company Number: 46442

JSE Share Code: SRE

LSE (GBP) Share Code: SRE

LEI: 213800NURUF5W8QSK566

ISIN Code: GG00B1W3VF54

 

29 February 2024

Sirius Real Estate Limited

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

 

Sirius Real Estate agrees third German business park acquisition this year for
€13.75 million

 

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 the acquisition of a business park in
Klipphausen, near Dresden, together with an adjacent land parcel for an
acquisition price of €13.75 million (£11.73 million).

 

The acquisition has been made using the proceeds of November 2023's €165
million (£147 million) capital raise. It represents the third asset to be
acquired by Sirius in Germany this calendar year, and the sixth asset to be
acquired across both Germany and the U.K. in recent months.

 

The site has been acquired from a corporate owner occupier who plans to vacate
the building, which is expected to be six months after completion. Sirius'
plan is to convert the site, which currently comprises approximately 17,700
sqm of modern primarily light industrial and production space, into a
multi-tenanted business park. Sirius' asset management platform has identified
multiple parties interested in leasing space at the site, which in aggregate
is already in excess of the site's entire leasable area. The plan is also to
expand the park through the development of the adjacent 10,000 sqm land parcel
which forms part of the acquisition.

 

In order to allow a smooth departure from the property, Sirius has granted the
vendor a six-month lease, which can be extended by two months at their option,
in return for a rent of €200k per month. This short-term lease will provide
Sirius with valuable preparation time ahead of the vendor vacating, as well as
contribute to the planned investment into the site.

 

The property is strategically located in the town of Klipphausen, near
Dresden, which is the capital of the Saxony state in Germany. The business
park sits within a highly desirable micro-location in the economically
important "Silicon Saxony", a registered industry association of nearly 300
SME businesses, and benefits from good transport networks and connectivity.
The Klipphausen asset will be the second business park owned and operated by
the Company in or near Dresden, enabling Sirius to leverage a number of
operational synergies alongside its local market expertise.

 

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "This
acquisition presents the Company with a strong value-add opportunity to grow
income and value through our operating platform. We are encouraged that we
already have multiple parties who have expressed leasing interest in the
business park, representing in aggregate more than the entire space available.
Additionally, the adjacent land parcel offers significant development
potential in an area benefiting from extremely high occupier demand for light
industrial, affordable assets in out-of-town locations.

 

"We are continuing to make good progress on our acquisition pipeline,
following our well supported €165 million (£147 million) equity raise in
November and remain extremely active in both Germany and the U.K., with this
asset to be our third acquired in Germany this year, and our sixth at Group
level since November. We have now committed to over €90 million (£77.1
million) of acquisitions in that time and are in advanced discussions on a
further €60 million (£51.4 million) of additional opportunities, leaving us
well placed to support the continued long-term growth of the Group."

 

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

+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 U.K. As of 30
September 2023, the Group's portfolio comprised 139 assets let to 9,248
tenants with a total book value of over €2 billion, generating a total
annualised rent roll of €184.2 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/)

 

Follow us 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  ACQFLFFDFDITFIS