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SIRIUS REAL ESTATE LIMITED - Sirius Agrees 16 Million Sale Of Bizspace Business Park In London

Release Date: 16/05/2022 08:00
Code(s): SRE     PDF:  
Wrap Text
Sirius Agrees £16 Million Sale Of Bizspace Business Park In London

(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54

16 May 2022

                                       Sirius Real Estate Limited

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


Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany and the UK, announces that it has agreed the
sale of an asset in Camberwell, London, for £16 million representing a NIY of c. 2.0%.

The asset formed part of the portfolio Sirius acquired in November 2021 with its purchase of BizSpace,
the leading provider of regional light industrial, workshop, studio and out of town office units across
the UK. The sale price represents a 94% premium to the valuation at the time of Sirius’ acquisition of

The multi-tenanted business park, which comprises approx. 34,700 sq. ft. of industrial and office
space, is 91% occupied following a series of asset management measures delivered through the
BizSpace platform.

The sale is expected to complete in July 2022.

Commenting on the transaction, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“This disposal is further proof of the latent value in the BizSpace portfolio we acquired late last year,
the price being significantly ahead of last September’s valuation on which our purchase was based,
and the attractive sale follows our recent announcement that we had since improved like-for-like
rental income across the portfolio by 7.5%. The sale will allow us to invest in new opportunities for
BizSpace in the UK as we continue to build our acquisition pipeline. Bringing together the Sirius and
BizSpace platforms, with a strengthened management team at BizSpace, is already delivering strong
results and operational synergies that will enhance our UK portfolio.”

                                                 - ENDS -

For further information:

Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110

FTI Consulting (Financial PR)
Richard Sunderland / James McEwan / Talia Jessener
+44 (0) 20 3727 1000

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 and the UK. The Company’s purpose
is to create and manage optimal workspaces that empower small and medium-sized businesses to
grow, evolve and thrive. Sirius seeks to unlock the potential of its people, its properties, and the
communities in which it operates, so that together we can create sustainable impact, and long-term
financial and social value.

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.

Sirius also has a venture with clients represented by AXA IM Alts. Titanium was formed through the
acquisition by AXA IM Alts, on behalf of its clients, from Sirius, of a 65% stake in five business parks
across Germany. Sirius retained the remaining 35%. The venture seeks to grow primarily through the
acquisition of larger stabilised business park assets and portfolios of assets with strong tenant profiles
and occupancy. As well as its equity interest, Sirius acts as operator of the assets in the venture, on a
fee basis. 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 venture does not conflict with Sirius's existing business.

In November 2021, Sirius Real Estate announced and completed the acquisition of BizSpace, a leading
provider of regional flexible workspace in the UK. BizSpace offers light industrial, workshop, studio
and out of town office units to a wide range of businesses across the UK and the acquisition therefore
provided Sirius with a unique opportunity to immediately enter, with scale, an under-served new
market through a one-step acquisition of an established platform. It provides Sirius with a high-quality
portfolio, offering significant organic growth potential in rental pricing in a UK market characterised
by supply constraints. The BizSpace business is also highly complementary to Sirius' existing platform,
allowing for meaningful operational and financial synergies to drive value creation for Sirius

For more information, please visit:

Follow us on LinkedIn at

Follow us on Twitter at @SiriusRE

JSE Sponsor - PSG Capital

Date: 16-05-2022 08:00:00
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