Sirius acquires business park in Mannheim

RNS Number : 6010C
Sirius Real Estate Limited
02 October 2018
 

2 October 2018

 

Sirius Real Estate Limited

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

 

Sirius completes acquisition of business park in Mannheim

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the acquisition of a business park in the northeast of Mannheim in South West Germany, for €9.62 million, reflecting an EPRA net initial yield of 6.0%.

The acquisition was funded using a combination of capital raised from the placing in March 2018 and proceeds from asset disposals. With a gross lettable area of 15,000 sqm comprising office and warehouse space, the park is currently 68.9% leased to 57 tenants producing annual net operating income of €576,000. The weighted average lease expiry is 1.7 years.

The business park is well located in a strong commercial area on Weinheimer Strasse, six kilometres from the city centre and five kilometres from our other site in Mannheim, Sirius Business Park Mannheim. The new park is currently let to a broad range of businesses, including: McFit Global Group, one of the largest fitness centre chains in Europe; DEKRA Akademie, a training institute; and Lapis Drucktechnologie, a manufacturer of printers and laminators.

In addition to the acquisitions already completed this year totalling €75.5 million, the Company has entered into exclusivity to acquire a further €59.7 million of assets and is close to completing the deployment of the €100 million of acquisition capability it communicated to shareholders in the year-end results.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "Located on a large plot with a short weighted average lease length in an area where rents have been rising over the past five years, our second business park in Mannheim is an exciting opportunity for Sirius to enhance income and overall value."

"This acquisition plays to the strengths of our integrated business model and track record of achieving efficiencies at sites we acquire in and around markets where we already have existing business parks."

 

For further information:

Sirius Real Estate

Andrew Coombs, CEO

Alistair Marks, CFO

+49 (0)30 285010110

 

Tavistock (financial PR)

Jeremy Carey

James Verstringhe

Kirsty Allan

+44 (0)20 7920 3150

siriusrealestate@tavistock.co.uk

 

 

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the main market and premium segment of the London Stock Exchange and the main board of the Johannesburg Stock Exchange.  It is a leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company's core strategy is the acquisition of business parks at attractive yields, the integration of these business parks into its network of sites under the Company's own name as well as offering a range of branded products within those sites, and the reconfiguration and upgrade of existing and vacant space to appeal to the local market, through intensive asset management and investment. The Company's strategy aims to deliver attractive returns for shareholders by increasing rental income and improving cost recoveries and capital values, as well as by enhancing those returns through financing its assets on favourable terms. Once sites are mature and net income and values have been optimised, the Company may take the opportunity to refinance the sites to release capital for investment in new sites or consider the disposal of sites in order to recycle equity into assets which present greater opportunity for the asset management skills of the Company's team.

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

LEI: 213800NURUF5W8QSK566

JSE Sponsor

PSG Capital

 


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