Wrap Text
Sirius Real Estate agrees €43 million of German transactions with Lübeck acquisition and Pfungstadt disposal
SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
30 May 2025
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius", the "Company" or the "Group")
Sirius Real Estate agrees €43 million of German transactions with Lübeck acquisition and
Pfungstadt disposal
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany and the U.K., has notarised its first acquisition
in Lübeck, north Germany, having agreed to purchase a multi-let business park for €12.67 million (total
acquisition costs) representing a 7.9% EPRA Net Initial Yield. The Company has also agreed the sale of
a business park in Pfungstadt on the outskirts of Frankfurt for €30 million, representing an
approximate 9% premium to book value and representing an EPRA Net Initial Yield of 6.8%.
Lübeck business park sits on a 21,650 sqm plot and offers 14,810 sqm of lettable space comprising 67%
production and warehouse facilities, with the balance dedicated to office. The park is 88% let to a
range of businesses, has a weighted average lease expiry (WALE) of 4.9 years and produces a current
rent roll of €1.05 million per annum. A further lease has already been agreed by Sirius and the current
owner with an energy and mobility solutions business, that will take occupancy to above 95% when it
completes in August and increase the annual rent roll to €1.13 million.
The existing tenant base is well-diversified, comprising established companies from a range of sectors,
with three businesses in medical diagnostics, industrial manufacturing and food processing
respectively, accounting for 72.1% of rental income. These large tenants are complemented by a
number of smaller and medium sized occupiers.
The business park is well located in Lübeck's main commercial area, a city with a population of around
220,000 and the second largest in the federal state of Schleswig-Holstein. In close proximity to the A1
autobahn, one of Germany's main motorways, it is approximately one hour from Hamburg, where the
Company has around 92,000 sqm of space across four business parks. Lübeck is also home to
Germany's largest Baltic Sea port, handling over 25 million tonnes of cargo annually. It offers regular
ferry and freight links to Sweden, Finland, and the Baltic states.
The city will also benefit from a €7.5 billion government infrastructure project. A 17.6 km tunnel
beneath the Baltic Sea, set for completion in 2029, will bring Copenhagen within an hour's drive of
Lübeck. In addition, 88 km of new railway is being built between Lübeck and the Danish border via the
tunnel. This will further integrate Lübeck into the trans-European transport network and improve
access to northern markets.
Sirius's multi-tenanted park in Pfungstadt has been notarised for sale to another real estate operator
for €30 million, a 9% premium to book value and representing an EPRA Net Initial Yield of 6.8%.
Located 50 km south of Frankfurt in the state of Hesse, the park has 33,452 sqm of lettable space
which is 89% occupied by over 100 tenants. The Company acquired the park in July 2008 for €14.5
million (total acquisition costs). This sale is in line with Sirius's strategy of recycling mature assets that
have limited potential for future value creation and allows the Group to reinvest the proceeds in more
value-accretive opportunities. The transaction is expected to complete in the final quarter of the
current financial year.
Full Year Results
As a reminder, Sirius will announce results for the financial year ended 31 March 2025 on Monday,
2 June 2025, and will be hosting an accompanying in-person and a virtual webinar presentation for
analysts and investors. Please use the contact email below if you wish to attend.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "These two transactions
further progress our strategy of crystallising value from the sale of mature assets such as Pfungstadt
and recycling capital into acquisitions where we have identified an opportunity to add value through
our platform. In Lübeck we have acquired a well-located business park that generates strong cashflows
from a diversified tenant base, comprising established companies from a range of sectors. Lübeck is a
city that is not only a major trade and transport hub, served by one of Germany's busiest ports, but it
is also the beneficiary of a significant infrastructure project that will link it directly to Copenhagen and
which is expected to bolster the local economy and drive demand for commercial space. Our strong
balance sheet means we are well placed to continue to source and execute acquisitions from our
pipeline at this opportune time in the market cycle."
ENDS
For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0) 20 3059 0855
FTI Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney / James McEwan
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the equity shares (commercial companies) category of the
London Stock Exchange and the premium segment of the main board of the JSE Limited. It is a leading
owner and operator of branded business and industrial parks providing conventional space and
flexible workspace in Germany and the U.K. As of 30 September 2024, the Group's owned portfolio
comprised 145 assets let to 10,025 tenants with a total book value of €2.4 billion, generating a total
annualised rent roll of €214 million. Sirius also holds a 35% stake in Titanium, its €350+ million
German-focused joint venture with clients of AXA IM Alts.
The Company's strategy centres on acquiring business parks at attractive yields and integrating them
into its network of sites - both under the Sirius and BizSpace names and alongside a range of branded
products. The business then seeks to reconfigure and upgrade existing and vacant space to appeal to
the local market via intensive asset management and investment and may then choose to refinance
or dispose of assets selectively once they meet maturity, to release capital for new investment. This
active approach allows the Company to generate attractive returns for shareholders through growing
rental income, improving cost recoveries and capital values, and enhancing returns through securing
efficient financing terms.
For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/ or on X at @SiriusRE
JSE Sponsor: PSG Capital
Date: 30-05-2025 08:00:00
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