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 February 2024
Sirius Real Estate
Limited
("Sirius Real Estate", "Sirius", the
"Company" or the "Group")
Sirius Real Estate acquires two more
business parks in Germany for €40 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 acquisitions of two business parks, one in Köln
(Cologne) and the other in Göppingen, for
a total acquisition cost of approximately €40 million (£34
million). The acquisitions have been made using the proceeds of
November's £147 million (€165 million) capital raise.
This follows on from the three UK acquisitions
in North London at the end of last year for £33.5 million.
The two recently notarised business parks in Germany
add just under 55,000 sqm of primarily light industrial and
production space to the Group's c. 1.9 million sqm German
portfolio.
The business park in Köln, Germany's fourth
largest city, in Nord-Rhein Westphalia, comprises 19,114
sqm of principally light industrial space. The property has been
notarised at a price of €20.0 million and currently generates total
rental income of €1.67 million and an annualised net operating
income of €1.56 million, representing a gross yield at acquisition
of 8.4% and an EPRA net initial yield of 7.3%. The site has an
occupancy rate of just over 89%, with a weighted average unexpired
lease term ("WAULT ") of 2.4 years and a well-diversified, stable
tenant structure. The park offers a number of strong value add
opportunities to drive rental growth, including accessible
under-renting which Sirius has identified.
In Göppingen, a city in the state
of Baden-Württemberg, south east of Stuggart in southern Germany,
Sirius is acquiring a multi-tenanted business park with a total
lettable area of approximately 35,160 sqm across primarily light
industrial and production space. The acquisition has been notarised
at €19.8 million and generates total rental income of €1.78 million
and an annualised net operating income of €1.47 million, reflecting
a gross yield of 9.0% and an EPRA net initial yield of 6.9%.
With occupancy at around 86% and a WAULT
of 2.8 years, the property offers the opportunity for Sirius to use
its platform to improve occupancy, income and service charge
recovery.
Both business parks are situated in highly
desirable micro-locations within well established light industrial
zones, and benefit from good transport networks and connectivity.
The Köln asset will be the fourth business park owned and operated
by the Company on the edge of Köln and the Göppingen site will be
the tenth asset in the area surrounding Stuttgart. The proximity to
other Sirius sites will enable the Company to leverage a number of
operational synergies alongside its local market
expertise.
Andrew Coombs,
Chief Executive Officer of Sirius Real Estate,
commented: "These acquisitions provide the
Company with strong day one cash flow from a stable, diversified
tenant base and align well with our strategy of curating
a range of flexible out-of-town light industrial products
that we expect to appeal to the local market. Acquired at
attractive yields, these sites offer under-rented space and an
opportunity to reduce vacancy and improve cashflow,
providing a range of avenues for Sirius to leverage
its UK and German operating platforms to generate significant value
creation and to grow net operating income over the medium
term.
"We are making good progress on
our pipeline of further acquisitions, with the benefit
of a strong cash position following our well supported £147 million
equity raise in November. We currently have €78 million of proceeds
committed to legally binding acquisitions, €38 million of which has
already been completed. We are in an advanced stage of discussions
with over €70 million of additional opportunities across Germany
and the U.K. and we expect to deploy the remaining fundraise
proceeds in the coming months."
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 UK. 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
Follow us on LinkedIn
at https://www.linkedin.com/company/siriusrealestate/
Follow us on X (Twitter) at
@SiriusRE
JSE Sponsor
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