REG - Sirius Real Estate - Sirius announces acquisition & disposal of assets

Sirius Real EstateAnnouncement

27/03/2025 07:15

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RNS Number : 3952C  Sirius Real Estate Limited  27 March 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

 

27 March 2025

 

Sirius Real Estate Limited

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

 

Sirius Real Estate to acquire Mönchengladbach business park for €17.2
million and dispose of BizSpace Cardiff for £5.1 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 multi-tenanted
business park in Mönchengladbach for €17.21 million (total acquisition
costs), representing an 8.21% Net Initial Yield (NIY).

 

Following the recent successful disposal of its BizSpace Tyseley business park
at a 20% premium to book value, Sirius has also exchanged contracts for the
sale of its BizSpace Cardiff site for £5.075 million, representing a 10%
premium to current book value. The sale of Cardiff is the fourth disposal in
the U.K. this current financial year, with these sales having collectively
achieved an average premium of 13.5% to book value.

 

The Mönchengladbach site is being acquired through a sale and partial
leaseback agreement with the current owner, SMS group, a globally recognised
engineering and plant construction company which occupies approximately 26% of
the site. The new leases with SMS group, which is one of the largest employers
in Mönchengladbach and has its global headquarters adjacent to the site, have
been secured on terms between 3 and 10 years, with a WALE of six years. These
leases will contribute materially to the asset's day one rent roll of €2.43
million.

 

The 124,599 sqm business park currently has a gross lettable area of 70,899
sqm, 65% of which is production and warehouse space, and includes a 25,773 sqm
car park with around 1,000 spaces. It is currently 66% occupied, leaving
plenty of value-add opportunity for the Sirius operating platform.

 

The Mönchengladbach asset is located close to the major economic hubs of
Düsseldorf, Duisburg and Cologne in Germany's North Rhine-Westphalia, a
region in which Sirius already owns a number of business parks, thereby
providing operational synergies.  As well as being well placed to serve the
needs of the nearby cities, the asset also benefits from excellent transport
connectivity to Germany's national and international road network.

 

Sirius entered into terms to sell BizSpace Cardiff with the buyer in September
2023 subject to planning approval, which was granted in December 2024. Located
on Cardiff's city fringe, the property comprises 44,195 sq ft of lettable
office space and will be converted into student accommodation by the buyer.

 

Once the acquisition of Mönchengladbach completes, Sirius will have
successfully deployed €118 million of the €181 million (£152 million)
raised in July 2024 on six income producing assets, which have value creation
potential and collectively generate day one net operating income of
€8.5 million. In addition, the Group has balance sheet headroom for at
least €100 million of additional debt funding, while remaining well within
its leverage targets, to continue its acquisition programme. Within this
Sirius continues to receive interest from Sparkasse (local savings banks) to
provide funding on individual assets at interest rates comfortably below 4.0%,
as it did with the recently announced €13 million five year loan with
Sparkasse Saarbrucken.

 

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "The
acquisition in Mönchengladbach allows us to take ownership of an asset with
enormous potential. It will provide both day one income and a longer-term
opportunity to attract occupiers to the business park through asset
management, with further operational synergies from the asset's close
proximity to our existing portfolio in the region. We are also pleased to have
undertaken another sale and leaseback deal, demonstrating our ability to work
with corporate owner occupiers to help them extract value from their property
assets, while maintaining operations in locations that are highly important to
the continuity of their businesses. We see significant potential for similar
transactions in Germany.

 

"The disposal of our Cardiff asset at a 10% premium to book value also
underlines our ability to maximise the value of non-core assets in order to
recycle the proceeds into properties which offer greater opportunity for us to
add value through Sirius' asset management platform."

 

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/)

 

Follow us on X (Twitter) at @SiriusRE

 

JSE Sponsor

PSG Capital

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