SIRIUS REAL ESTATE LIMITED - Completion of the Acquisition of two Business Parks for 21.8 Million

Completion of the Acquisition of two Business Parks for €21.8 Million

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
Share Code: SRE
ISIN Code: ISIN GG00B1W3VF54
(“Sirius” or “the Company”)


COMPLETION OF THE ACQUISITION OF TWO BUSINESS PARKS FOR €21.8 MILLION

Sirius Real Estate is pleased to confirm that it has completed the acquisition of two multi-let business
parks located in Aachen and Bonn for a total consideration of €21.8 million, inclusive of acquisition
costs.

The Aachen business park is located in the expanding Würselen district, just west of the Company’s
Bonn and Cologne parks and well situated next to the Dutch and Belgian borders. It has a total
lettable area of 26,759 sqm and is currently 73% let to a mix of office and light industrial tenants. The
Bonn business park, has a total lettable area of 9,810 sqm and is currently 76% let to mix of office,
service and retail businesses. These sites generate €2.2 million of annualised rental income and €1.9
million of net operating income at a combined EPRA Net Initial Yield of 9.02%*.

In both Aachen and Bonn there is significant scope to expand upon the existing tenant base where
the Company sees excellent opportunity to invest in the vacant space and generate attractive returns
from a mixture of conventional office and industrial space as well as its flexible workspace solutions.
Such “value-add” opportunities are a key element of Sirius’s acquisition criteria.

*Calculated as rental income less non recoverable service charge costs and landlord maintenance, over purchase price plus
acquisition costs

The acquisitions were funded by the proceeds from the Company’s recent €40 million Private
Placement announced on 28 November 2014 and a drawdown of the remaining €9.9 million from its
new €36 million, 5-year debt facility. The monies drawn down have a 2.85% fixed annual interest
charge and an initial amortisation rate of 2.00% per annum. Taking account of the financing, the initial
cash on cash return is 14.53%.

The Company has now completed the acquisition of the four key sites of the five targeted for a total
consideration of €71m (including all costs) representing the majority of the €76 million acquisition
portfolio referred to in our announcement on 28 November 2014. The remaining potential €4.5 million
acquisition of a business park in Mahlow will not be proceeding and the Company is currently
reviewing alternative acquisition opportunities.

Andrew Coombs, Chief Executive of Sirius, commented: "Aachen and Bonn are two areas in which
we have been looking to increase our presence for some time. Both are prosperous, well located,
cities and are currently undersupplied in terms of good quality flexible workspace suitable for the SME
market. The Bonn site is adjacent to our existing site in Siemensstrasse and the acquisition
significantly increases the scale of our offering there.

As with our other two recently completed acquisitions, we are again able to take advantage of a
significant yield gap making these transactions immediately earnings enhancing. In addition, we are
confident we can enhance the vacant space and attract new tenants to further increase returns to
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

Guernsey
11 February 2015

Sponsor: PSG Capital (Pty) Ltd

Date: 11/02/2015 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.