Completion of acquisition of BizSpace Group
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
15 November 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Completion of acquisition of BizSpace Group
Further to its announcements of 8 November 2021, Sirius Real Estate,
the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany,
is pleased to announce that it has now completed the acquisition of Helix Investments Limited, the holding company of the BizSpace business, for a cash consideration of c. £245 million, based on an enterprise value of £380 million (the "Acquisition").
BizSpace is a leading provider of regional flexible workspace, offering light industrial, workshop, studio and out of town office units to a wide range of businesses across the UK and the acquisition therefore provides Sirius with a unique opportunity to enter with immediate scale an under-served new market via a one-step acquisition of an established platform. It provides Sirius with a high-quality portfolio, offering significant organic growth potential in rental pricing in a UK market characterised by supply constraints. The BizSpace business is also highly complementary to Sirius' existing platform, allowing for meaningful operational and financial synergies to drive value creation for Sirius shareholders.
The Acquisition has been financed through a combination of the Company's existing cash resources and the issue and subsequent admission to trading on the London and Johannesburg stock exchanges of 105,281,686 new Ordinary Shares of the Company, which raised gross proceeds of c. £137 million. Sirius has also assumed BizSpace's existing gross financial debt of c. £146 million.
Commenting on the transaction, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "The completion of this acquisition marks a significant step forward in the continued evolution and growth of Sirius as a business. It provides us with our first expansion into a new geography via the acquisition of a significant portfolio of assets and an established operating platform, both of which we believe have huge potential. The success of our capital raise was also a very positive endorsement both of this transaction and our wider strategy for growth. We now look forward to working with the BizSpace team towards our overriding goal of growing FFO and generating sustainable and growing returns on behalf of shareholders."
Ends
Enquiries:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
Tel: +49 (0) 30 2850 10 110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / Talia Jessener
Tel: +44 (0) 203 727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate Limited
Sirius is a property company listed on the main market and premium segment of the London Stock Exchange and the main board of the JSE. It is a leading operator of branded business parks providing conventional space and flexible workspace in Germany. The Company's purpose is to create and manage optimal workspaces that empower small and medium-sized businesses to grow, evolve and thrive. Sirius seeks to unlock the potential of its people, its properties, and the communities in which it operates, so that together we can create sustainable impact, and long-term financial and social value.
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.
Sirius also has a venture with clients represented by AXA IM Alts. Titanium was formed through the acquisition by AXA IM Alts, on behalf of its clients, from Sirius, of a 65% stake in five business parks across Germany. Sirius retained the remaining 35%. The venture seeks to grow primarily through the acquisition of larger stabilised business park assets and portfolios of assets with strong tenant profiles and occupancy. As well as its equity interest, Sirius acts as operator of the assets in the venture, on a fee basis. Sirius will continue to grow its wholly owned portfolio through acquisitions of more opportunistic assets, where it can capitalise on its asset management expertise to maximise utilisation of the space, grow occupancy and improve quality of the tenants. The strategies have been clearly defined so that the venture does not conflict with Sirius' existing business.
For more information, please visit: www.Sirius-real-estate.com
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