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SIRIUS REAL ESTATE LIMITED - Sirius Real Estate Acquires Two More Business Parks In Germany For 40 Million
2024/02/12 09:00:00Download PDF Stock report
Sirius Real Estate Acquires Two More Business Parks In Germany For 40 Million
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
12 February 2024
Sirius Real Estate Limited
('Sirius Real Estate', 'Sirius', the 'Company' or the 'Group')
Sirius Real Estate acquires two more business parks in Germany for 40 million
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 acquisitions of
two business parks, one in Köln (Cologne) and the other in Göppingen, for a total acquisition cost of
approximately 40 million (£34 million). The acquisitions have been made using the proceeds of
November's £147 million (165 million) capital raise.
This follows on from the three UK acquisitions in North London at the end of last year for £33.5 million.
The two recently notarised business parks in Germany add just under 55,000 sqm of primarily light
industrial and production space to the Group's c. 1.9 million sqm German portfolio.
The business park in Köln, Germany's fourth largest city, in Nord-Rhein Westphalia, comprises
19,114 sqm of principally light industrial space. The property has been notarised at a price of 20.0
million and currently generates total rental income of 1.67 million and an annualised net operating
income of 1.56 million, representing a gross yield at acquisition of 8.4% and an EPRA net initial yield
of 7.3%. The site has an occupancy rate of just over 89%, with a weighted average unexpired lease
term ('WAULT ') of 2.4 years and a well-diversified, stable tenant structure. The park offers a number
of strong value add opportunities to drive rental growth, including accessible under-renting which
Sirius has identified.
In Göppingen, a city in the state of Baden-Württemberg, south east of Stuggart in southern Germany,
Sirius is acquiring a multi-tenanted business park with a total lettable area of approximately 35,160
sqm across primarily light industrial and production space. The acquisition has been notarised at 19.8
million and generates total rental income of 1.78 million and an annualised net operating income of
1.47 million, reflecting a gross yield of 9.0% and an EPRA net initial yield of 6.9%. With occupancy at
around 86% and a WAULT of 2.8 years, the property offers the opportunity for Sirius to use its platform
to improve occupancy, income and service charge recovery.
Both business parks are situated in highly desirable micro-locations within well established light
industrial zones, and benefit from good transport networks and connectivity. The Köln asset will be
the fourth business park owned and operated by the Company on the edge of Köln and the Göppingen
site will be the tenth asset in the area surrounding Stuttgart. The proximity to other Sirius sites will
enable the Company to leverage a number of operational synergies alongside its local market
expertise.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: 'These acquisitions
provide the Company with strong day one cash flow from a stable, diversified tenant base and align
well with our strategy of curating a range of flexible out-of-town light industrial products that we
expect to appeal to the local market. Acquired at attractive yields, these sites offer under-rented space
and an opportunity to reduce vacancy and improve cashflow, providing a range of avenues for Sirius
to leverage its UK and German operating platforms to generate significant value creation and to grow
net operating income over the medium term.
'We are making good progress on our pipeline of further acquisitions, with the benefit of a strong
cash position following our well supported £147 million equity raise in November. We currently have
78 million of proceeds committed to legally binding acquisitions, 38 million of which has already
been completed. We are in an advanced stage of discussions with over 70 million of additional
opportunities across Germany and the U.K. and we expect to deploy the remaining fundraise proceeds
in the coming months.'
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 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
Date: 12-02-2024 09:00:00
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