Sirius completes disposal of Bremen Business Park

RNS Number : 9002U

Sirius Real Estate Limited

03 April 2019

 

03 April 2019                                                                                                                          

Sirius Real Estate Limited

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

Sirius completes disposal of Bremen Dötlinger Strasse Business Park

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the sale of its Bremen Dötlinger Strasse Business Park, to a private investor, for €6.3 million, in line with the book value at 30 September 2018 and reflecting an EPRA net yield of 5.1%. The property was notarised for sale on the 23 October 2018.

The property comprises 10,273 sq m of mixed-use space, which is 43% vacant and requires significant capital expenditure to attract new tenants.

This final disposal completes the Company's recent programme of sales of a number of non-core assets in the portfolio, the others being  Bremen Hag Business Park, Bremen Brinkmann, a non-income producing piece of land and a vacant residential building. Together these have generated proceeds of €27.4 million.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "With the disposal of these non-core assets and the complete withdrawal from the non-core location of Bremen, we are now focused on Germany's "big seven" cities. The proceeds from these sales provide us with additional capital to invest in our capex investment programme on the current portfolio and on new acquisitions."

For further information:

Sirius Real Estate

Andrew Coombs, CEO

Alistair Marks, CFO

[phone]

Tavistock (financial PR)

Jeremy Carey

James Verstringhe

[phone]

[e-mail]

NOTES TO EDITORS

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.

On 1 March 2019, Sirius announced that, in a transaction due to complete in June 2019, it had formed a real estate investment joint venture with clients represented by AXA Investment Managers - Real Assets in which AXA acting on behalf of its clients, will own a 65% interest and Sirius will own the balance of 35%. The JV is being formed initially by AXA acquiring, on behalf of its clients, from Sirius a 65% stake in five business parks, two located in Berlin (Berlin Borsig and Berlin Tempelhof) and one in each of Mainz, Nurnberg and Bayreuth. The business parks provide a combination of office, warehouse,  industrial and storage space. The implied property value of €168 million equates to a gross yield for the portfolio of 6.2% and reflects a 19% premium to the last reported book value as at 30 September 2018 (€141.1 million). The transaction is expected to generate total cash proceeds of more than €70 million for Sirius after refinancing and related costs.

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

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