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Sirius Notarises A Business Park In Norderstedt, Hamburg
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
14 September 2020
Sirius Real Estate Limited
("Sirius Real Estate", “Sirius” or the "Company")
Sirius notarises a business park in Norderstedt, Hamburg
Sirius Real Estate, the leading operator of branded business parks providing conventional space and
flexible workspace in Germany, announces that it has notarised the acquisition of a business park in
Norderstedt, just north of central Hamburg, for a total of €9.1 million (including acquisition costs),
reflecting an EPRA net initial yield of 7.6%. The acquisition will be funded using existing cash resources
of approximately €127.0 million, €108.5 million of which is unrestricted. This will leave the Company
with just under €100.0 million of unrestricted cash after the acquisition of Norderstedt is taken into
account. Completion of the acquisition is expected in December 2020.
Acquisition Details
Constructed between 1969 and 1991, the site provides 12,600 sqm of mixed use net lettable space of
which 68% is warehouse, 29% is office and 3% is other space. It has 118 parking spaces and sits on a
total plot size of 18,500 sqm. The property is located 15 km north of Hamburg city centre and 4.5 km
north of Hamburg International Airport.
The asset is 100% let to 12 tenants at an average rate per sqm of €4.99, with a WALT of 3.2 years and
total gross rental income of €783,000 per annum. This acquisition complements the strategy to
establish a cluster of properties in and around the port city of Hamburg, following the decision to exit
from Bremen with the sale of €25.6 million of assets there in the financial year ended 31 March 2019.
The Norderstedt site expands Sirius’s portfolio in Hamburg to four business parks and most importantly
gives Sirius a presence in the north of Hamburg, with good access to Hamburg International Airport.
Commenting on this acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“This is another good acquisition within the Greater Hamburg Metropolitan area, increasing the total
number of assets within the region to four with a total lettable area of more than 95,000 sqm. This
transaction at an EPRA net initial yield of 7.6% demonstrates Sirius’ ability to access good quality high
yielding assets in and around the 7 key cities in Germany.”
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285 010 110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150/+ 44 (0)7836 734 625
Email: siriusrealestate@tavistock.co.uk
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 JSE Limited. 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.
In July 2019, the Company completed the formation of its Titanium real estate investment joint venture
with clients represented by AXA Investment Managers - Real Assets. Titanium was formed through the
acquisition by AXA IM - Real Assets, on behalf of its clients, from Sirius, of a 65% stake in five business
parks across Germany. Sirius will retain the remaining 35% and will act as operator of the assets, on a
fee basis. Subject to suitable investment opportunities, AXA IM - Real Assets and Sirius may consider
opportunities to grow the JV’s portfolio primarily through the acquisition of larger stabilised business
park assets and portfolios of assets with strong tenant profiles and occupancy. Sirius will continue to
grow its wholly owned portfolio through acquisitions of more opportunistic assets, where it can
capitalise on its asset management expertise to maximise utilisation of the space, grow occupancy and
improve quality of the tenants. The strategies have been clearly defined so that the JV does not conflict
with Sirius's existing business.
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
PSG Capital
Date: 14-09-2020 02:30:00
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