Disposal of Kassel business park
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
03 October 2023
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius Real Estate continues asset recycling programme with disposal of Kassel business park at premium to book value
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 disposal of a business park in Kassel, in Germany's southwest Hesse region, for €7.3 million, representing a net initial yield ("NIY") of 6.0%.
The disposal was achieved at an approximate 5% premium to book value (March 2023: €6.95 million). The asset, which is 92% let, comprises a total lettable area of 8,342 sqm of industrial, office, logistics and other space within a 16,217 sqm plot size.
The Company also announces that it has now completed the £9.5m acquisition of two mixed use industrial assets for its BizSpace subsidiary in the U.K., exchange of which was announced on 27 July 2023. The two assets are located in Liverpool and Barnsley with a combined area of 71,957 sq ft of predominantly workshop space. The purchase price represents a NIY of 9.6% (total acquisition cost).
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "Our disposal of Kassel at a premium to book value has allowed us to capitalise on demand for this high quality property. The sale of this asset at a 6.0% NIY, coupled with the completion of our acquisition of the properties in Liverpool and Barnsley at a 9.6% NIY represents a good example of our strategy of recycling capital from mature assets into those where we believe we can grow income and value through our operating platform. In the current market we are focused on improving rental levels and providing tenants with the flexibility and services they need. We see plenty of opportunities to continue creating value through asset management across the BizSpace portfolio, as we have successfully achieved through the Sirius platform with our German assets."
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 / Sebastian Duran de Huerta
+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 31 March 2023, the Group's portfolio comprised 140 assets let to 9201 tenants with a total book value of over €2 billion, generating a total annualised rent roll of €178.3 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/
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