SIRIUS REAL ESTATE
LIMITED
(Incorporated
in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
29 February 2024
Sirius Real Estate
Limited
("Sirius Real Estate", "Sirius", the
"Company" or the "Group")
Sirius Real Estate
agrees third German business park acquisition this year for €13.75
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 business park in
Klipphausen, near Dresden, together with an
adjacent land parcel for an acquisition price of €13.75 million
(£11.73 million).
The acquisition has been made using the
proceeds of November 2023's €165 million (£147 million) capital
raise. It represents the third asset to be acquired by Sirius in
Germany this calendar year, and the sixth asset to be acquired
across both Germany and the U.K. in recent months.
The site has been acquired from a corporate
owner occupier who plans to vacate the building, which is expected
to be six months after completion. Sirius' plan is to convert the
site, which currently comprises approximately 17,700 sqm of modern
primarily light industrial and production space, into a
multi-tenanted business park. Sirius' asset management platform has
identified multiple parties interested in leasing space at the
site, which in aggregate is already in excess of the site's entire
leasable area. The plan is also to expand the park through the
development of the adjacent 10,000 sqm land parcel which forms part
of the acquisition.
In order to allow a smooth departure from the
property, Sirius has granted the vendor a six-month lease, which
can be extended by two months at their option, in return for a rent
of €200k per month. This short-term lease will provide Sirius with
valuable preparation time ahead of the vendor vacating, as well as
contribute to the planned investment into the site.
The property is strategically located in the
town of Klipphausen, near Dresden, which is the capital of the
Saxony state in Germany. The business park sits within a highly
desirable micro-location in the economically important "Silicon
Saxony", a registered industry association of nearly 300 SME
businesses, and benefits from good transport networks and
connectivity. The Klipphausen asset will be the second business
park owned and operated by the Company in or near Dresden, enabling
Sirius to leverage a number of operational synergies alongside its
local market expertise.
Andrew Coombs,
Chief Executive Officer of Sirius Real Estate,
commented: "This acquisition presents the
Company with a strong value-add opportunity to grow income and
value through our operating platform. We are encouraged that we
already have multiple parties who have expressed leasing interest
in the business park, representing in aggregate more than the
entire space available. Additionally, the adjacent land parcel
offers significant development potential in an area benefiting from
extremely high occupier demand for light industrial, affordable
assets in out-of-town locations.
"We are continuing to make good progress on our
acquisition pipeline, following our well supported
€165 million (£147 million) equity raise in November and remain
extremely active in both Germany and the U.K., with this
asset to be our third acquired in Germany this year,
and our sixth at Group level since November. We have now committed
to over €90 million (£77.1 million) of
acquisitions in that time and are in advanced discussions on a
further €60 million (£51.4 million) of
additional opportunities, leaving us well placed to support the
continued long-term growth of the Group."
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 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
Follow us on LinkedIn
at https://www.linkedin.com/company/siriusrealestate/
Follow us on X (Twitter) at
@SiriusRE
JSE Sponsor
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