Disposal

RNS Number : 4163Q

Sirius Real Estate Limited

06 June 2018

 

 6 June 2018

Sirius Real Estate Limited

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

Notarisation for €3.8 million Sale of Bremen Hag Business Park

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the notarisation of the sale of its Bremen Hag business park for €3.8 million, in line with book value.

The notarisation of Bremen Hag is the second site the Company has sold this year in Bremen, an area which is outside of Sirius's key focus on Germany's "big seven" cities. Bremen Hag is the Group's last remaining non-core site and is located next to a container port in Bremen Harbour, which has limited its appeal amongst prospective tenants. The asset is unfinanced and is loss-making, with a net operating expense of around €300k and occupancy of less than 19%. The sale is likely to complete by October 2018.

The sale will have a positive impact by:

·     Generating €3.8 million of free cash to be reinvested into new assets with greater potential;

·     Increasing occupancy (as at 31 May 2018) by 2.61% due to the reduction of 47,252 sqm of vacant space on the site; and

·     Increasing Group profitability by the removal of a loss-making asset.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "This is the only remaining non-core site in our portfolio. It has been a challenging site and it is therefore particularly pleasing to have notarised the sale in line with book value. The impact on occupancy as a result of selling both Bremen sites due to their high vacancy is likely to be around 4%.  This, together with the combined sales proceeds of €19.3 million now available for re-investment, means the two disposals will have a positive impact on the Company."

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/

Follow us on Twitter at @SiriusRE

LEI: 213800NURUF5W8QSK566

 

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