Wrap Text
Sirius Completes Acquisition Of 8,800 Sqm Stuttgart Business Park For €9.2 Million
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE (EUR) Share Code: ESRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
2 March 2021
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
SIRIUS COMPLETES ACQUISITION OF 8,800 SQM STUTTGART BUSINESS PARK FOR €9.2 MILLION
Acquisition immediately adjacent to Sirius’ existing asset at Fellbach, near Stuttgart, providing a
range of operational and asset management opportunities
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany, announces that it has completed the
acquisition of a 8,800 sqm mixed-use business park in Fellbach, near Stuttgart, for a total acquisition
cost of €9.2 million, reflecting an EPRA net initial yield of 6.0%.
This investment follows the Company’s acquisition in August 2018 of a business park located in
Fellbach where, as a result of the application of a range of asset management initiatives, occupancy
has increased to in excess of 90% from 79% when first acquired. The new asset sits immediately
adjacent to the Company’s existing site, creating an enlarged business park comprising over 36,000
sqm of gross lettable area. Sirius acquired the business park from a local family office using existing
cash resources.
The park is situated in a well-developed commercial area 7.8 km to the north-west of Stuttgart and
benefits from easy access to public transport and the major B14 motorway. Built in the 1970’s, the
new asset has 8,800 sqm of gross lettable area and 200 parking spaces, and comprises a range of uses
including office space (62%), warehouse/logistics (32%) and other space (6%).
The business park is currently 94.6% let to Daimler AG as the single tenant, at an average rent of €7.04
per sqm, producing a total annualised rental income of approximately €730,000. Daimler is expected
to vacate the office element of the property by the end of June 2021, and the warehouse element of
the property by December 2021, after which Sirius will seek to implement a range of asset
management initiatives including the upgrade of space in order to capture local market demand for
office and warehouse space.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“This high-quality asset deepens our exposure to a commercial market in which we already have
extensive experience. The acquisition will provide a number of compelling operational synergies and
widens our range of asset management options particularly when considered alongside our existing
adjacent Fellbach business park. With the major tenant moving out shortly after completion our focus
is on growing income through the capture of reversion and reduction in service charge leakage. We
continue to benefit from a strong balance sheet allowing us to maintain our strategy of acquisitive
growth in and around Germany's key cities.”
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Alistair Marks, CFO
+49 (0) 30 285010110
FTI Consulting (Financial PR)
Richard Sunderland / Claire Turvey / James McEwan / Talia Jessener
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
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 JSE Limited. It is a leading operator of branded business parks
providing conventional space and flexible workspace in Germany. 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.
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
JSE Sponsor
PSG Capital
Date: 02-03-2021 09:00:00
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