Acquisition update

RNS Number : 2165Y

Sirius Real Estate Limited

04 December 2017

 

The Company considers this announcement to contain inside information which is disclosed in accordance with the Market Abuse Regulation

4 December 2017

Sirius Real Estate Limited

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

Completion of Acquisition in Hamburg for €8.4m

and completion of a Land Sale in Berlin for €0.95m

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the completion of an acquisition for €8.4 million and the sale of non-income producing land in Berlin for €0.95 million. Dates of notarisation and the details of the two transactions were announced with the Company's trading statement on 9 October 2017.

In summary:

·     The Hamburg-Hummelsbüttel acquisition for €8.4 million (including acquisition costs) is an office building and has 11,223 sqm of lettable space and is currently 100% vacant providing substantial value-add potential.

·     The sale of 5,000 sqm of non-income producing land on the outskirts of the Tempelhof business park in Berlin for €0.95 million, represents a significant premium to book value and a major opportunity for this site to re-invest the proceeds into accretive new projects.

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

"These are two good transactions for Sirius and in the case of the Hamburg acquisition, it provides excellent scope to use our intensive asset management skills to add recurring income and increase capital values. Additionally, Hamburg is a new and key market for us, and with this site and another currently under notarisation we are well positioned to make a strong entry.

The land sale at a significant premium to book value reflects our strategy to maximise shareholder returns at the asset level by crystallising profits on non-income producing assets and finding the most accretive sources to fund our capex programme. The proceeds from this sale will be invested to convert suboptimal space into high-quality offices on the same business park from which we expect to generate a high return."

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

 

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