SIRIUS REAL ESTATE LIMITED - Acquisition Update

Acquisition Update

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
Share Code: SRE
ISIN Code: ISIN GG00B1W3VF54


                                                                               8 September 2016

                                    Sirius Real Estate Limited

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

                                        Acquisition Update

Sirius Real Estate, the leading operator of branded business parks providing conventional space
and flexible workspace in Germany, is pleased to announce that following on from the successful
private placing raising €30 million before expenses completed in June 2016, the Company has
notarised and is near to completing the acquisition of two multi-let business parks, referred to at
the time of the fundraising, for a total consideration of €46.3 million.

The first site being purchased is for a total consideration of €28.6 million and is located in Dresden,
a prosperous industrial city where many international corporations are based. This multi-let
business park is positioned next to the city’s airport and is well placed to continue to benefit from
demand from Dresden’s successful commercial sector. The site has 53,200 sqm of gross lettable
area of which 45.9% is offices and 39.3% is warehouse. The occupancy upon acquisition is
65.7% across a broad base of 60 tenants paying a total annual rental income of €2.78 million
(equating to €4.35 psm) with a weighted average lease length remaining of 3.3 years. It is being
acquired on an 8.3% EPRA net initial yield (equating to €538 per sqm of capital value) and is
expected to complete in October 2016.

The second business park is being purchased for a total consideration of €17.7 million and is
located in the heart of Wiesbaden’s commercial district known for being strong across the public
administration, IT, construction and insurance sectors. The total gross lettable area of the property
is 19,602 sqm of office space of which 64.6% is let to 3 tenants paying an annual rental income
of €1.88 million (equating to €7.99 psm) with a weighted average lease length remaining of 2.7
years. The business park is being acquired on a 9.1% EPRA net initial yield (equating to €901
per sqm of capital value) and is expected to complete in October 2016.
The purchase costs of these two sites will be met in part by funds raised from the private
placement and the balance will be funded by a new €70 million banking facility with BerlinHyp
referred to at the time of the fundraising which the Company expects to be in place in October.
As announced in June, this facility is expected to have a 7 year term and an interest rate priced
at or around 1.6%. The Company still has circa €10 million of cash from the June equity raise
with which to fund further acquisitions.

Andrew Coombs, Chief Executive Officer, said, “After 10 years of focusing exclusively on this
market we know exactly what we are looking for and what makes the best returns for our
shareholders. These two sites fit neatly within our criteria as we are buying them at an EPRA net
initial yield above 8%, financing the transaction with very attractive banking terms and purchasing
enough vacancy to provide significant value-add opportunity. They will provide both an attractive
immediate return and strong opportunity for income and valuation growth following a capex
investment program to enable leasing of the current voids.”


Enquiries:

Sirius Real Estate                                           +49 (0)30 285010110

Andrew Coombs, CEO

Alistair Marks, CFO

Peel Hunt                                                    +44 (0)20 7418 8900

Capel Irwin

Edward Fox

Canaccord Genuity Limited                                    +44 (0)20 7523 8000

Bruce Garrow

Chris Connors

JSE Sponsor: PSG Capital                                     +27 (0)21 887 9602

David Tosi

Willie Honeyball

Novella                                                      +44 (0)20 3151 7008

Tim Robertson

Toby Andrews

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