REAL ESTATE
Sirius to place shares in pursuit of R1bn property acquisition
German business park operator Sirius Real Estate is eyeing a five-property portfolio worth more than R1bn. CEO Andrew Coombs said the group would place new shares to raise £35m (R586.6m) to buy the portfolio. The group did not provide details about the portfolio. The shares will be offered to institutional and other investors via an accelerated bookbuild. Sirius has been recycling assets since January 2017 and also raised equity last year. Sirius, which is listed on the London Stock Exchange and the JSE, operates branded business parks providing conventional space and flexible workspace in Germany. It also has a personal storage business. The target portfolio of assets could be bought for about €77m (R1.13bn) including acquisition costs. The portfolio has a net initial yield of about 7.3% The equity placing is expected to be earnings accretive when fully invested. "The portfolio assets offer an attractive combination of a stable income stream together with excellent scope to create ...
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