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SIRIUS REAL ESTATE LIMITED - Sirius Completes Acquisition Of Second Bochum Property

Release Date: 02/09/2019 08:00
Code(s): SRE     PDF:  
 
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Sirius Completes Acquisition Of Second Bochum Property

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
ISIN Code: ISIN GG00B1W3VF54

02 September 2019

                                      Sirius Real Estate Limited

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


                         Sirius completes acquisition of second Bochum property

Sirius Real Estate, the leading operator of branded business parks providing conventional space and
flexible workspace in Germany, announces that it has completed the acquisition of an office building
adjacent to its Bochum Business Park, in Bochum, a city in the Ruhr region of Germany. The property
was bought for a total consideration of €6.7 million including acquisition costs reflecting an EPRA net
initial yield of 5.5%. The acquisition, notarised in July 2019, was settled in cash and funded using
proceeds from recent asset recycling activity. The vendor was Häusser-Bau GmbH.

The property, constructed in 1970, provides 4,200 sqm of lettable space (81% office space, 15%
storage and 4% service space) and 71 parking spaces on a total plot size of circa 3,300 sqm. It is 100%
let, producing an annual total income of circa €428,000 and annual net operating income of €370,000,
reflecting a weighted average rent of €8.00 per/sqm with a remaining WALT of 2.2 years. The principal
tenant is ThyssenKrupp Bilstein, a subsidiary of the giant ThyssenKrupp conglomerate which designs
and manufactures shock absorbers.

The property is directly adjacent to the Company’s 56,000 sqm Bochum Business Park, which was
acquired for €25.7 million in March 2019, together creating a combined value of more than €32.0
million. As a result of the proximity of the asset to this existing site, the Company benefits from a
wider range of asset management options and operational synergies.

Bochum is located mid-way between Dortmund and Essen, in North Rhine-Westphalia, the third-
largest urban area in the European Union. The property is well situated in Bochum-Hofstede, north
of the city centre and within walking distance of a U-Bahn with easy access to the A40 and A43
motorways.

Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“Acquiring this property was a logical next step following the success we have had with the Bochum
Business Park since its acquisition in March this year. Not only does the acquisition of an adjacent
property provide us with additional asset management possibilities, as well as the opportunity to
realise operational synergies, but also offers us marriage value and helps deliver on our strategy to
increase the average lot size of our assets. Following the completion of the acquisition of Alzenau,
notarised at €44.5 million in July, we have already made a good start with this strategy”.

For further information:

Sirius Real Estate

Andrew Coombs, CEO/Alistair Marks, CFO

Tel: +49 (0)30 285010110


Tavistock (Financial PR)

Jeremy Carey/James Verstringhe

Tel: +44 (0)20 7920 3150

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 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.

In July 2019, Sirius completed on a joint venture with clients represented by AXA Investment Managers
- Real Assets in which AXA acting on behalf of its clients, owns a 65% interest and Sirius owns the
balance of 35%. The JV is called Titanium. The JV was initially formed by AXA acquiring, on behalf of
its clients, from Sirius a 65% stake in five SPVs through which it currently owns two business parks
located in Berlin (Berlin Borsig and Berlin Tempelhof) and one in each of Mainz, Nurnberg and
Bayreuth. The business parks provide a combination of office, warehouse, industrial and storage
space. The implied property value of €168 million equates to a gross yield for the portfolio of 6.2%
and reflects a premium to the book value as at 30 September 2018 which was €141.1 million. Total
cash commitment from AXA IM - Real Assets amounts to €43.9 million.

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: 02/09/2019 08:00:00
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