Acquisition of Business Park

RNS Number : 9000A

Sirius Real Estate Limited

04 January 2018

 

4 January 2018

Sirius Real Estate Limited

("Sirius Real Estate" or the "Company")

Acquisition of Krefeld Business Park

for €9.2m Completed

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the acquisition of a business park in Krefeld for €9.2 million (including acquisition costs).

Located in Krefeld, near Dusseldorf, the business park has been acquired at a 6.7% EPRA net initial yield. This is the third site that Sirius has acquired in Krefeld, which is a market that the Company knows well. This business park has 10,398 sqm of modern, quality office and warehouse space, with occupancy of 72% and annualised rental income of €0.7 million.

The acquisition was notarised on 29 September 2017.

Andrew Coombs Chief Executive Officer of Sirius Real Estate, said:

"Krefeld is one of the markets we know extremely well in Germany and we are confident of adding value to this, the latest of our Krefeld acquisitions. The City is commercially vibrant with excellent links to Dusseldorf and across Germany. We already have 17,793 sqm of lettable workspace in Krefeld so we know the types of workspace that are in undersupply. We will use this local knowledge and the operational synergies available to us to add rental income, alongside investing in re-branding and transforming sub-optimal areas."

For further information:

Sirius Real Estate Andrew Coombs, CEO Alistair Marks, CFO	[phone]
Novella Tim Robertson Toby Andrews	[phone]

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 Johannesburg Stock Exchange.  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.

 For more information, please visit: www.sirius-real-estate.com 

Images of the Sirius property portfolio are available from: https://www.flickr.com/photos/sirius_re/

LEI: 213800NURUF5W8QSK566

 

END

 

 

ACQBLGDBSUGBGIX