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

Sirius Real EstateAnnouncement

Tue 07:00

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RNS Number : 8816U  Sirius Real Estate Limited  12 August 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

 

12 August 2025

Sirius Real Estate Limited

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

 

Sirius grows U.K. portfolio by c. 20% with £101.1 million acquisition of
Hartlebury Trading Estate

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 completed the acquisition of the Hartlebury Trading
Estate in Worcestershire for £101.1 million, excluding acquisition costs.
The acquisition is transformational for Sirius' U.K. business which operates
as BizSpace, where it will increase the size of the portfolio by 18% to 8.3
million sq ft, while growing the gross asset value by approximately 20% and
immediately boosting revenues by 10%.

This transaction follows the Company's announcement last week of acquisitions
in Dresden and Bedford and is the ninth business park it has bought in 2025,
with a total investment value of €289.9 million that has added €20
million of net operating income.

The estate currently generates net operating income of £6.9 million from over
100 tenants, with a WAULT of 4.1 years. It has been acquired with 84%
occupancy, with the majority of vacant space either recently refurbished or
newly built, presenting attractive reversionary opportunities. The transaction
reflects an EPRA net initial yield of 6.45% after acquisition costs, while
also offering reversion potential through letting of vacancy and asset
management initiatives.

Hartlebury Trading Estate is set on a vast 171-acre site comprising a freehold
multi-let industrial park with approximately 1.5 million sq ft of
predominantly warehouse accommodation, alongside 17 acres of industrial open
storage plots. Sirius has already identified a number of opportunities to
increase income, in line with its value-add asset management strategy,
including environmentally focused upgrades in the near term.

With exceptionally low building coverage of just 19% and configured in a way
that allows it to be separated into three separate estates, Hartlebury Trading
Estate offers plenty of asset management opportunity, including benefitting
from two development plots that provide further optionality and longer-term
potential to extend.

This well-maintained business park was originally built by the Ministry of
Defence as an RAF maintenance base. In addition to its attractiveness to
traditional occupiers, it is therefore also well suited to defence related
businesses.

The asset benefits from a strategic Midlands location to the west of
Birmingham and north of Gloucester, where the 60 acre Vantage Point business
park which the Company acquired last year is located. Hartlebury is 10 miles
from the M5 motorway, while a train station adjacent to the northern entrance
of the estate is an attractive proposition for occupiers whose staff can
commute easily from surrounding locations. The region is serviced by
Birmingham Airport, the U.K.'s seventh largest airport, and East Midlands
Airport, which is the U.K.'s number one airport for pure freight.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "The
acquisition of Hartlebury Trading Estate marks a significant and highly
strategic milestone for our U.K. BizSpace platform. Adding over 1.5 million sq
ft across 171 acres, this transaction materially scales our U.K. portfolio and
positions us as a leading player in the Midlands region. The estate offers
immediate, robust cash flow from a well-diversified and stable tenant base,
while also presenting a number of opportunities to leverage the combined
expertise of the Sirius and BizSpace platforms to enhance existing revenues
and unlock new income streams through hands-on asset management, further
enhancing the yield.

"In 2025 alone, we've secured investments of just under €290 million into
income-generating business parks, bringing a total of €20 million of new
initial net operating income into the Group. This demonstrates our ability to
source and execute accretive investments that not only strengthen our rent
roll but also unlock long-term growth potential through development and
repositioning initiatives.

"We have now fully allocated the capital from our two equity raises in
November 2023 and July 2024, as well as the corresponding leverage that was
unlocked from the May 2024 bond tap and January 2025 bond issuance. Whilst we
still have some balance sheet headroom remaining as a result of the valuation
increase we achieved in the last financial year, we are pleased that our
capital deployment has been successful and shareholders will see the effects
of the growth and accretion it brings come through in our second half results
and beyond."

ENDS

 

DISCLOSURE OF TRANSACTION INFORMATION AS REQUIRED BY THE JSE LISTINGS
REQUIREMENTS

As the acquisition of the Hartlebury Trading Estate ("Acquisition")
constitutes a category 2 transaction in terms of the JSE Listings
Requirements, the following additional information is disclosed.

Detail of seller(s)

 

British Overseas Bank Nominees Limited and WGTC Nominees Limited, the
beneficial owners of which are Schroders Capital UK Real Estate Fund

 

Purchase consideration

 

The cash purchase consideration amounts to £101,137,499.26.

 

Conditions precedent

 

The Acquisition is not subject to any remaining conditions precedent.

 

Effective date of the acquisition

 

The effective date of the Acquisition is 8 August 2025.

 

Warranties and other significant terms of the agreement

 

The agreement contains representations and warranties by the seller in favour
of the Company which are standard for a transaction of this nature.

 

The property

 

Details of the property are as follows:

 

 Property Name and Address                                                       Geographical Location  Sector      Gross Lettable Area  Weighted Average Gross Rental per month / m²

(m²)
 The freehold and leasehold property known as Hartlebury Trading Estate, Walton  Worcestershire, U.K.   Industrial  135,219              £4.26
 Road, Kidderminster,

 DY10 4JB, U.K.

 

Notes:

 

a)      In addition to the purchase consideration, the costs associated
with the acquisition are estimated at £6.1 million. £525,000 agents
commission is payable in respect of the acquisition.

b)     The purchase consideration payable in respect of the rental
enterprise (which includes the property) is considered to be its fair market
value, as determined by the directors of the Company. The directors of the
Company are not independent and are not registered as professional valuers or
as professional associate valuers in terms of the South African Property
Valuers Profession Act, No. 47 of 2000, as amended.

 

Forecast Financial Information of the Acquisition

 

The forecast financial information relating to the asset purchased in terms of
Acquisition for the financial periods ending 31 March 2026 and 31 March 2027
are set out below. The forecast financial information has not been reviewed or
reported on by an auditor in terms of section 8 of the JSE Limited Listings
Requirements and is the responsibility of the Company's directors.

 

                            Forecast for the 8-month period ending 31 March 2026  Forecast for the 12-month period ending 31 March 2026

                            (€)                                                   (€)
 Revenue                     5,133,265                                             8,235,135
 Operating profit            4,978,377                                             8,093,018
 Net profit after taxation   4,978,377                                             8,093,018
 Distributable profit        4,978,377                                             8,093,018

 

Notes:

a)      Revenue includes gross rentals and other recoveries but excludes
any adjustment applicable to the straight-lining of leases.

b)     Property expenses include all utility and council charges
applicable to the property.

c)      The forecast information for the 8-month period ended 31 March
2026 has been calculated from the anticipated transfer date, being on or about
8 August 2025.

d)     Contractual rental revenue constitutes 100% of the revenue for the
8-month period ended 31 March 2026 and 100% of the revenue for the 12-month
period ended 31 March 2027.

e)     There is no uncontracted revenue. No rental guarantee has been
provided to Sirius.

f)      There is no near-contracted revenue.

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO / Chris Bowman, CFO

+44 (0) 20 3059 0855

 

FTI Consulting (Financial PR)

Richard Sunderland / Giles Barrie / James McEwan / Ellie Sweeney

+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 31 March 2025, the Group's
portfolio comprised 145 assets let to 10,477 tenants with a total book value
of over €2.5 billion, generating a total annualised rent roll of €221.4
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 (Twitter) at
@SiriusRE

JSE Sponsor

PSG Capital

 

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