Sirius continues asset recycling programme
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
07 November 2023
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Company" or the "Group")
Sirius Real Estate continues asset recycling programme with disposal of Maintal industrial park at premium to book value and acquisitions in North London
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 disposal of an industrial park in Maintal, in Germany's southwest Hesse region, for €40.1 million, representing a net initial yield ("NIY") of 5.7%.
The disposal was achieved at approximately 6% above the last reported book value. The Maintal industrial park offered Sirius little potential for further value creation, however its strategic location made it attractive to the purchaser, a trend we have witnessed in past disposals of mature assets.
The Company also announces that through its BizSpace subsidiary, it has exchanged and completed on the acquisition of a £33.5 million portfolio of three assets located in North London, from a closed ended fund. The assets are based in busy suburban areas, with two in the Borough of Islington and one in the Borough of Camden. The three assets have a combined area of 103,962 sq ft of primarily multi-let studio workspaces and occupancy rate of just under 70%, which the Group views as providing significant potential for growth. The properties are let on flexible leases and have a WAULT of 3.1 years. The buildings are well maintained and have over 70 customers, the 10 largest of whom occupy over 50% of the occupied area. The purchase price represents a NIY of 7.3% which through active asset management initiatives should generate a running yield in excess of 10% at maturity.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "The Maintal disposal at a premium to book value has allowed us to capitalise on demand for this high quality property. The sale of this mature asset at a 5.7% NIY, coupled with the completion of our acquisition of the properties in London at a 7.3% NIY with only a 70% occupancy, 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 are increasingly seeing attractive acquisition opportunities across both Germany and the U.K. and will continue to pursue our asset recycling activities to support the 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 UK. As of 31 March 2023, the Group's portfolio comprised 140 assets let to 9,201 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
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