To view the PDF file, sign up for a MySharenet subscription.

SIRIUS REAL ESTATE LIMITED - Sirius Acquires 20 Million Office Complex Near Munich Airport

Release Date: 02/12/2019 09:00
Code(s): SRE     PDF:  
Wrap Text
Sirius Acquires €20 Million Office Complex Near Munich Airport

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

2 December 2019

Sirius Real Estate Limited

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

Sirius acquires €20 million office complex near Munich Airport

Sirius Real Estate, the leading operator of branded business parks providing conventional space and
flexible workspace in Germany, announces that it has acquired an office complex in Hallbergmoos,
near Munich Airport, for €20.2 million (including acquisition costs). The vendor is KCM Invest AG, a
Munich based investment firm.

Constructed in 1993, the property is located on Lilienthalstrasse in Hallbergmoos which is 29 km
northeast of Munich, where Sirius already owns two business parks. It provides a total of 19,600 sqm
of net lettable space (16,300 sqm of office, 2,200 sqm of warehouse and 1,100 sqm of other space),
over three floors, together with 336 parking spaces on a total plot size of 14,943 sqm.

The asset is 55% let to 28 tenants, producing an annual rental income of € 960,000 at an average rate
of €6.67 per sqm and a remaining WALT of 2.4 years. Tenants include Heinz von Heiden GmbH, Mentor
Deutschland GmbH and Dorma Time + Access GmbH. The purchase price (including acquisition costs)
reflects an EPRA net initial yield of 3.4% owing to the 45% vacancy in the building.

The asset is being acquired on an unencumbered basis, funded by a combination of funds generated
from the disposal of five Sirius assets to the Titanium joint venture with AXA Investment Managers -
Real Assets and from the recent extension of the Berlin Hyp Amber bank facility.

Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“This asset fits well with our acquisition criteria, in particular the low capital value, the level of vacancy
within the building and the low average rent compared to the local market. It offers a great opportunity
to add significant value by playing to the strengths of our integrated business model and track record
of maximising occupation and growing rental levels.”

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, 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: 02-12-2019 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.

Share This Story