REG - Sirius Real Estate - Sirius completes Wuppertal business park sale

Sirius Real EstateAnnouncement

03/04/2023 07:15

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RNS Number : 0440V  Sirius Real Estate Limited  03 April 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

 

3 April 2023

Sirius Real Estate Limited

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

SIRIUS COMPLETES WUPPERTAL BUSINESS PARK SALE AT PREMIUM TO BOOK VALUE

25% combined premium to book value achieved on six sales during last 12 months

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., announces that it has completed the disposals of two
assets for a combined total of €12.2 million, representing an average NIY of

c. 4.1%.

The most recent disposal, which completed on 1 April 2023, was achieved at a
5.3% premium to book value (30 September 2022: €8.3 million) and comprised a
c.15,000 sqm (162,000 sq ft) mixed-use mature business park in Wuppertal, in
North Rhine Westphalia, Germany.  Originally acquired by Sirius in 2007 and
sold for €8.8 million, the property offered office, warehouse and
production as well as workshop space and was approximately 80% let.

This disposal follows the €3.4 million (£3.0 million) sale at book value
(as at 30 September 2022) of a c.82,000 sq ft (7,620 sqm) vacant office
building in Ipswich, U.K., which completed in December 2022.

The Company has disposed of six assets in the last 12 months (including the
sale of two non-income producing land parcels in Germany) for a total sales
price of €45.7 million compared with a book value of €36.7 million,
representing a 25% aggregate premium to the last book value prior to each
sale.  Each disposal was achieved at or above book value, with the proceeds
being invested in the acquisition of three new sites in Germany for a total
consideration of €44.6 million, of which €43.7 million was transacted in
the second half of 2022. The three new sites are now generating higher
revenues than the income contributed by the assets disposed of earlier in the
year. The new sites offer a number of value add accretive asset management
opportunities for the Company to unlock through its platform, in particular,
the opportunity of leasing up empty space to increase rental income.

Commenting on the transactions, Andrew Coombs, Chief Executive Officer of
Sirius Real Estate, said: "The strategic disposal of these assets at or above
book value during a challenging market underpins the strength of our
portfolio.  This is based on both the historically higher yields at which our
portfolio is valued, relative to many other parts of the sector, which we
believe provide it with a higher degree of insulation when real estate values
come under pressure, as well as our ability to offset this further by driving
inflationary income growth through our asset management platform. It also
demonstrates our ability to crystallise returns from mature assets, which can
then be recycled into investing into new opportunities within our portfolio
where we see an opportunity to create value."

 

For further information:

 

Sirius Real Estate

Andrew Coombs, CEO / Alistair Marks, CIO and Interim 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 2022, and following the acquisition of BizSpace, a leading UK provider
of regional flexible workspace, the Group's portfolio comprised 140 assets let
to 9,452 tenants with a total book value of over €2 billion, generating a
total annualised rent roll of €167.1 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
name 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
selectively refinance or dispose of assets 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. The Company has a strong track record for
growing its income and has delivered like-for-like rent roll growth in excess
of 5% for the last eight consecutive years.

 

For more information, please visit: www.sirius-real-estate.com

 

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/

 

Follow us on Twitter at @SiriusRE

 

JSE Sponsor

PSG Capital

 

 

 

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