Last checked at 3 Apr 2023 07:00
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
3 April 2023
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS COMPLETES WUPPERTAL BUSINESS PARK SALE AT PREMIUM TO BOOK VALUE
25% combined premium to book value achieved on six sales during last 12 months
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., announces that it has completed the disposals of two assets for a combined total of €12.2 million, representing an average NIY ofc. 4.1%.
The most recent disposal, which completed on 1 April 2023, was achieved at a 5.3% premium to book value (30 September 2022: €8.3 million) and comprised a c.15,000 sqm (162,000 sq ft) mixed-use mature business park in Wuppertal, in North Rhine Westphalia, Germany. Originally acquired by Sirius in 2007 and sold for €8.8 million, the property offered office, warehouse and production as well as workshop space and was approximately 80% let.
This disposal follows the €3.4 million (£3.0 million) sale at book value (as at 30 September 2022) of a c.82,000 sq ft (7,620 sqm) vacant office building in Ipswich, U.K., which completed in December 2022.
The Company has disposed of six assets in the last 12 months (including the sale of two non-income producing land parcels in Germany) for a total sales price of €45.7 million compared with a book value of €36.7 million, representing a 25% aggregate premium to the last book value prior to each sale. Each disposal was achieved at or above book value, with the proceeds being invested in the acquisition of three new sites in Germany for a total consideration of €44.6 million, of which €43.7 million was transacted in the second half of 2022. The three new sites are now generating higher revenues than the income contributed by the assets disposed of earlier in the year. The new sites offer a number of value add accretive asset management opportunities for the Company to unlock through its platform, in particular, the opportunity of leasing up empty space to increase rental income.
Commenting on the transactions, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "The strategic disposal of these assets at or above book value during a challenging market underpins the strength of our portfolio. This is based on both the historically higher yields at which our portfolio is valued, relative to many other parts of the sector, which we believe provide it with a higher degree of insulation when real estate values come under pressure, as well as our ability to offset this further by driving inflationary income growth through our asset management platform. It also demonstrates our ability to crystallise returns from mature assets, which can then be recycled into investing into new opportunities within our portfolio where we see an opportunity to create value."
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CIO and Interim CFO
+49 (0) 30 285 010 110
FTI Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia Shirion / Sebastian Duran de Huerta
+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 31 March 2022, and following the acquisition of BizSpace, a leading UK provider of regional flexible workspace, the Group's portfolio comprised 140 assets let to 9,452 tenants with a total book value of over €2 billion, generating a total annualised rent roll of €167.1 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 name 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 selectively refinance or dispose of assets 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. The Company has a strong track record for growing its income and has delivered like-for-like rent roll growth in excess of 5% for the last eight consecutive years.
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
Follow us on Twitter at @SiriusRE
JSE Sponsor
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