Sirius Real Estate Regulatory News (SRE)

11 Mar 2008 15:16

Dawnay, Day Sirius11 March 2008 Dawnay, Day Sirius Limited has acquired two business parks for a total of €37million Dawnay, Day Sirius Limited (the "Company"), the real estate company establishedto acquire large mixed-use commercial real estate in Germany for upgrading toflexible workspaces, is pleased to announce that it has acquired two freeholdbusiness parks located in Offenbach and North Berlin for a combined total of €37million, to be satisfied by cash from existing resources. The Company believesboth acquisitions will be earnings enhancing, and represent an opportunity toincrease NAV capital growth through further development and transformation ofthe sites. In line with the Company's strategy, both sites are well suited for rebranding,development and upgrading into modern flexible workspaces to be leasedpredominantly to small and medium sized enterprises (SMEs). The Company believesthe benefit of modernising and transforming these sites will be reflected in anuplift in rental and capital values. BorsigWerke BorsigWerke, acquired for €28 million, is located in a large economic region inthe north of Berlin. BorsigWerke is formerly the headquarters for Borsig, one ofthe largest industrial companies in Germany. The site consists of offices,production facilities and warehouses with total lettable space of 73,123 m2. Theoccupancy rate is 90%, with more than 20 tenants in the metalworking, energysupply, electrical and service industries. The largest tenants are Borsig andMAN. The net rental income is approximately €2.67m with a net initial yield of8.9%. There is approximately 13,315.84 m2 of vacant land which brings excellentdevelopment potential for the Company. In addition, there is also 7,384 m2 ofvacant warehouse and office space which provides the Company with theopportunity to sub-divide and transform the space into smaller, modern units toattract new predominantly SME tenants, thereby generating additional rentalincome. Sud-Center, Offenbach Sud-Center business park in Offenbach, acquired for €9 million, is locatedwithin the industrial and business district of Sprendlinger Landstrasse, on thesouth-western outskirts of Offenbach. The site consists of offices and warehousefacilities with a total lettable space of 14,856 m2. There is approximately1,678 m2 of vacant warehouse and office space which provides the Company with anopportunity to develop and transform the site to attract new predominantly SMEtenants. This will include sub-dividing the space into flexible workspaces,installation of a fitness centre and a cafe. The site also has surplus landwhich will provide significant future development opportunities. The occupancy rate is 89% and most of the tenants are in the service industry.The net rental income is approximately €0.71 million with a net initial yield of7.4%. Kevin Oppenheim of the Asset Manager said: "These acquisitions are in line with our strategy, providing us with anexcellent opportunity to develop the vacant land and transform the existingspace into modern business parks. Both sites are located in established economicregions with scope to generate uplift in rental values and attract new SMEtenants. The German SME market remains buoyant and we continue to see strongtenant demand for modern flexible workspaces." Further Enquiries Sirius Facilities Group Kevin Oppenheim 020 7861 0550www.dawnaydaysirius.com Alistair Marks JPMorgan Cazenove Robert Fowlds 020 7588 2828 Bronson Albery KBC Peel Hunt Capel Irwin 020 7418 8900 Cardew Group Tim Robertson 020 7930 0777 M: 07900 927 650 Shan Shan Willenbrock Catherine Maitland Notes to Editors The Company was admitted to AIM in May 2007 with an initial marketcapitalisation of €300 million. Its strategy is to acquire large mixed usecommercial real estate in Germany suitable for upgrading into flexibleworkspaces for leasing to local business on a nationwide basis. Followingadmission the Company has acquired 27 properties, including the initialportfolio, with a combined lettable space of circa 700,000 m2. This information is provided by RNS The company news service from the London Stock Exchange