Sirius completes sale of Bremen Hag Business Park

RNS Number : 3693H

Sirius Real Estate Limited

14 November 2018

 

14 November 2018

Sirius Real Estate Limited

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

Sirius completes disposal of Bremen Hag Business Park and notarisation of sale of Bremen Dötlinger Strasse

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 Hag Business Park for €3.8 million and notarised the sale of its Bremen Dötlinger-Strasse Business Park for €6.3 million, both in line with book value.

Bremen Hag was a very large site located next to the container port in Bremen Harbour which held limited appeal among prospective tenants, and was loss-making with a net operating expense of around €300,000 and occupancy of less than 19%. The sale will therefore also increase overall occupancy of the current portfolio by more than 2.5%, removing 48,000 sqm of vacant space.

Bremen Dötlinger Strasse was notarised for sale on the 23 October 2018 and is expected to complete in March 2019.

These disposals complete the sale of the remaining non-core assets in the portfolio. They take the number of sales by the Company this year to five, the others being another non-core asset in Bremen, a non-income producing piece of land and a vacant residential building, which together will generate proceeds of €21.1 million (€27.4 million when Bremen Dötlinger completes in March 2019).

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "When the Bremen Dötlinger Strasse sale completes in March 2019, it will conclude the Company's strategy to exit Bremen, allowing us to focus our sights on Germany's "big seven" cities. The proceeds of both these sales will also provide additional capital to invest in the current portfolio and on new acquisitons."

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.

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

LEI: 213800NURUF5W8QSK566

JSE Sponsor

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