SIRIUS TO ACQUIRE NUREMBERG BUSINESS PARK
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
30 November 2020
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS TO ACQUIRE NUREMBERG BUSINESS AND INDUSTRIAL PARK
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany, announces that it has notarised the acquisition of a multi-tenanted business park in Nuremberg for a total acquisition cost of €13.7 million, reflecting an EPRA net initial yield of 7.1%. The purchase will be funded from existing cash resources, with completion expected in January 2021.
Sirius is acquiring the asset from a manufacturer of component parts for the European motorcycle and scooter market. Built in 1993, the asset has 13,600 sqm of gross lettable area and primarily comprises manufacturing space (61%), as well as office (24%), warehouse/logistics (11%) and other uses (4%). There are 138 car parking spaces on site.
The business park is currently 91% let to a mix of SME tenants at an average rent of €7.36 per sqm with a weighted average lease length of 4 years and produces a total annualised rental income of circa €1.1 million.
The park offers Sirius the opportunity to utilise its platform to improve occupancy and rental rates as part of its asset management plans for the asset.
The park is situated in a well-developed commercial area of Nuremberg which, with a population of 520,000, is Bavaria's second and one of Germany's largest cities. It lies around 4.5km north of the city centre and benefits from easy access to public transport and the A73 motorway.
The Company held total cash balances in excess of €110 million at 30 November 2020 and, as a result, has significant further acquisition firepower available.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: " This is a well-located asset acquired on an attractive yield, where we see potential to add value through our asset management initiatives. Nuremberg has a strong and diverse SME sector of which Sirius has good knowledge having owned an asset in the city for over 10 years. We continue to have significant resources to execute our strong pipeline of future acquisition opportunities around Germany's key cities, for both our own portfolio and our Titanium joint venture."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / Talia Jessener
(+44) 020 3727 1000
SiriusRealEstate@fticonsulting.com
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 JSE Limited. 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.
Sirius also has a venture with clients represented by AXA Investment Managers - Real Assets. Titanium was formed through the acquisition by AXA Investment Managers - Real Assets, 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's existing business.
For more information, please visit: www.sirius-real-estate.com
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