Sharenet Sites 
Sharenet Sites
Completed acquisition of two properties for €48.9 Million In Germany
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
Share Code: SRE
ISIN Code: ISIN GG00B1W3VF54
(“Sirius” or “the Company”)
20 December 2014
COMPLETED ACQUISITION OF TWO PROPERTIES FOR €48.9 MILLION IN GERMANY
Sirius Real Estate is pleased to confirm that it has completed the
acquisition of two multi-let business parks located in Mahlsdorf and
Potsdam, for a total consideration of €48.9 million, inclusive of
acquisition costs. The properties have been acquired from Union
Investment and represent two of the five sites referred to in our
announcement on 28th November 2014.
Located on the outskirts of Berlin, the two business parks have a
total lettable area of 67,774 sqm and will mean that the Company now
has five business parks in the Berlin area, a core market for the
Company where demand for flexible workspace solutions is high.
Based on the current occupancy of 86%, the two sites generate €4.1
million of annualised rental income and €3.8 million of net
operating income at an EPRA Net Initial Yield of 7.7%* and an
initial cash on cash return of 13.3%. When fully mature, the two
sites are expected to produce a rent roll in excess of €4.5 million
per annum. The existing tenant base of 74 tenants provides good
security with a weighted average lease length remaining of 3.94
years and the Company will now progress its plans to invest in the
vacant space to create a mixture of conventional office and
industrial space as well as its flexible workspace solutions.
*Calculated as rental income less non recoverable service charge
costs and landlord maintenance, over purchase price plus acquisition
costs
The acquisitions were funded by a drawdown of €26.1 million from its
new €36 million, 5-year debt facility from one of the Company’s
existing bankers. The monies drawn down have a 2.85% annual fixed
interest charge per annum and amortisation of 2.00%. The balance of
the total consideration will come from the proceeds of the Company’s
recent €40 million Private Placement also announced on 28 November
2014. The remainder of the €36 million bank facility will be drawn
down against further acquisitions, as previously announced, which
are expected to complete in January 2015.
Andrew Coombs, Chief Executive of Sirius, commented: "We are pleased
to have completed the acquisition of the two properties which are in
key locations on the outskirts of Berlin; a region in which we have
a strong track record of creating value-added tenancy space, and
where we plan to continue to increase our presence.
The EPRA Net Initial Yield of 7.7% is attractive and enables us to
take advantage of our ability to borrow money at below 3%. This
yield gap together with our asset management plans for the two sites
makes us confident we can generate good returns for shareholders.”
Enquiries:
Sirius Real Estate
Andrew Coombs, CEO +49 (0)30 285010110
Alistair Marks, CFO
Peel Hunt
Capel Irwin +44 (0)20 7418 8900
Hugh Preston
Finncap
Stuart Andrews +44 (0)20 7220 0500
Paul Harrington
PSG Capital
David Tosi +27 (0)21 887 9602
Willie Honeyball
Novella
Tim Robertson +44 (0)20 3151 7008
Ben Heath
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