REG - Sirius Real Estate - Sirius expands U.K. portfolio with acquisition

Sirius Real EstateAnnouncement

27/03/2024 07:00

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RNS Number : 4827I  Sirius Real Estate Limited  27 March 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

 

27 March 2024

Sirius Real Estate Limited

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

 

Sirius Real Estate expands U.K. portfolio with £48.25 million business park
acquisition

 

-Further asset recycling with the completion of Maintal disposal at premium to
book value-

 

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 exchanged contracts on the acquisition of Vantage
Point Business Village, a multi-let business park in Gloucestershire, for a
total acquisition cost of £48.25 million (€56.4 million), representing a
net initial yield at acquisition of 10.2%. The acquisition has been made using
the proceeds of the Company's £147 million capital raise, achieved last
November.

 

The acquisition represents the first asset in the U.K. and the fourth asset in
total acquired by Sirius this calendar year, following the purchases of
business and industrial parks in Köln, Göppingen and Klipphausen for
approximately €53.75 million in aggregate.

 

Through this purchase, Sirius will add more than 1.5 million sq ft of space to
its BizSpace portfolio, of which over 1 million sq ft is industrial space.

 

The 60-acre business park at Mitcheldean was renowned first for manufacturing
Rank projection equipment then as Rank Xerox's manufacturing hub between 1961
and 2003. It is 81% occupied and offers a mixture of warehouse, production,
storage, conventional and serviced office space to over 70 companies across
119 units. Sirius has identified a number of opportunities to drive value by
utilising its asset management platform to improve occupancy, income and
service charge recovery. The total acquisition cost includes a £1.25 million
deferred element which is conditional on certain events taking place within
nine months of completion.

 

As part of the acquisition, Sirius has also acquired a PV solar business from
the vendor which currently supplies most of the electricity to the site from
panels installed on certain buildings, providing energy security and an
attractive income stream.

 

Situated in a highly desirable location on the edge of The Forest of Dean, and
close to a number of major cities including Bristol to the South, Gloucester
to the East and Cardiff to the South West, the park benefits from good
transport networks and connectivity to the national motorway network via the
A40 and M50. Proximity to other Sirius sites, including Gloucester Barnwood
and Gloucester Morelands, will enable the Company to leverage operational
synergies alongside its local market expertise.

 

Separately, the Company has completed on the previously announced disposal of
an industrial park in Maintal, in Germany's southwest Hesse region, for
€40.1 million (£34.3 million), representing a net initial yield of 5.7%.
The asset, which comprises 37,830 sqm of logistics, office and industrial
space, was sold at an approximate 6% premium to the last reported book value
at the time of notarisation. The sale aligns well with Sirius' strategy of
recycling capital from mature assets into those where the Company believes it
can grow income and value through its operating platform.

 

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "This
sizeable strategic acquisition is transformational for our U.K. BizSpace
platform, and increases its portfolio by over 1.5 million sq ft. The 60-acre
park generates strong day-one cash flow from a stable, diversified tenant base
and offers various synergies with our existing assets in the local area. It
also presents a number of value creation opportunities by driving both
occupancy and rental income.

"Additionally, the completion of the Maintal disposal at a premium to book
value allows us to capitalise on demand for this high-quality property and
continue to crystallise returns from our mature portfolio. It also provides us
further flexibility to recycle capital into new opportunities within our
existing portfolio, as well as into our pipeline of acquisitions, alongside
the proceeds of November's £147 million (€165 million) equity raise. We
have now committed to over £135 million (€155 million) of acquisitions
since November and are continuing to actively seek future opportunities where
we see the chance to create value, leaving us well placed to support the
continued long-term growth of the Group."

The Group looks forward to providing its customary year-end trading update on
15 April 2024, following the end of the Company's financial year.

 

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 / Millie James

+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

 

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