Sirius expands U.K. portfolio with acquisition
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
27 March 2024
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Company" or the "Group")
Sirius Real Estate expands U.K. portfolio with £48.25 million business park acquisition
-Further asset recycling with the completion of Maintal disposal 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 exchanged contracts on the acquisition of Vantage Point Business Village, a multi-let business park in Gloucestershire, for a total acquisition cost of £48.25 million (€56.4 million), representing a net initial yield at acquisition of 10.2%. The acquisition has been made using the proceeds of the Company's £147 million capital raise, achieved last November.
The acquisition represents the first asset in the U.K. and the fourth asset in total acquired by Sirius this calendar year, following the purchases of business and industrial parks in Köln, Göppingen and Klipphausen for approximately €53.75 million in aggregate.
Through this purchase, Sirius will add more than 1.5 million sq ft of space to its BizSpace portfolio, of which over 1 million sq ft is industrial space.
The 60-acre business park at Mitcheldean was renowned first for manufacturing Rank projection equipment then as Rank Xerox's manufacturing hub between 1961 and 2003. It is 81% occupied and offers a mixture of warehouse, production, storage, conventional and serviced office space to over 70 companies across 119 units. Sirius has identified a number of opportunities to drive value by utilising its asset management platform to improve occupancy, income and service charge recovery. The total acquisition cost includes a £1.25 million deferred element which is conditional on certain events taking place within nine months of completion.
As part of the acquisition, Sirius has also acquired a PV solar business from the vendor which currently supplies most of the electricity to the site from panels installed on certain buildings, providing energy security and an attractive income stream.
Situated in a highly desirable location on the edge of The Forest of Dean, and close to a number of major cities including Bristol to the South, Gloucester to the East and Cardiff to the South West, the park benefits from good transport networks and connectivity to the national motorway network via the A40 and M50. Proximity to other Sirius sites, including Gloucester Barnwood and Gloucester Morelands, will enable the Company to leverage operational synergies alongside its local market expertise.
Separately, the Company has completed on the previously announced disposal of an industrial park in Maintal, in Germany's southwest Hesse region, for €40.1 million (£34.3 million), representing a net initial yield of 5.7%. The asset, which comprises 37,830 sqm of logistics, office and industrial space, was sold at an approximate 6% premium to the last reported book value at the time of notarisation. The sale aligns well with Sirius' strategy of recycling capital from mature assets into those where the Company believes it can grow income and value through its operating platform.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "This sizeable strategic acquisition is transformational for our U.K. BizSpace platform, and increases its portfolio by over 1.5 million sq ft. The 60-acre park generates strong day-one cash flow from a stable, diversified tenant base and offers various synergies with our existing assets in the local area. It also presents a number of value creation opportunities by driving both occupancy and rental income.
"Additionally, the completion of the Maintal disposal at a premium to book value allows us to capitalise on demand for this high-quality property and continue to crystallise returns from our mature portfolio. It also provides us further flexibility to recycle capital into new opportunities within our existing portfolio, as well as into our pipeline of acquisitions, alongside the proceeds of November's £147 million (€165 million) equity raise. We have now committed to over £135 million (€155 million) of acquisitions since November and are continuing to actively seek future opportunities where we see the chance to create value, leaving us well placed to support the continued long-term growth of the Group."
The Group looks forward to providing its customary year-end trading update on 15 April 2024, following the end of the Company's financial year.
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 / Millie James
+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
PSG Capital
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 2 hours ago ASOS
- 3 hours ago MJ Gleeson
- 3 hours ago Rolls-Royce Holdings
- 3 hours ago Crest Nicholson Holdings
- 4 hours ago Naked Wines