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SIRIUS REAL ESTATE LIMITED - Sirius Acquires Neckartenzlingen Business Park For 34.5 Million

Release Date: 01/12/2021 09:00
Code(s): SRE     PDF:  
Wrap Text
Sirius Acquires Neckartenzlingen Business Park For €34.5 Million

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

1 December 2021

                                       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 completed
the acquisition of a high-quality business park in Neckartenzlingen, south of Stuttgart, for a total cost
of €34.5 million. The transaction, which was notarised in September 2021, will be financed using
existing cash resources, and reflects an EPRA net initial yield of 5.6%.

As a result of this transaction Sirius has completed the acquisition of 254,100 sqm of business parks,
industrial space, out of town office space and a land parcel across 9 assets in Germany this financial
year, representing a total investment volume of €153.9 million. In addition, Sirius entered the UK
market in November with the acquisition of BizSpace, a leading provider of regional light industrial,
workshop, studio and out of town office units to a wide range of businesses for an enterprise value of
£380 million.

The Neckartenzlingen business park asset comprises three mixed-use buildings, which Sirius is
acquiring from two separate vendors, Hirschmann Electronics GmbH and Logwin Holding Immo
Aschaffenburg GmbH. Built between 1955 and 1991 and previously held as one combined asset, the
property has 54,515 sqm of gross lettable area and primarily comprises production space (36%),
warehouse space (30%) and out of town offices (27%) as well as other uses (7%). There are 893 car
parking spaces on site.

The business park is currently 80% let to two tenants in the electronics and communications sectors,
at an average rent of €3.84 per sqm. The asset produces a total annualised rental income of circa €2.2
million and has a WALE (weighted average lease expiry) of 8.1 years, providing stable, long term
cashflows with the opportunity to grow income through a range of asset management opportunities,
including the leasing of the remaining c. 10,700 sqm of vacant space.

Neckartenzlingen is an industrial town close to Stuttgart. It lies around 16 km south of Stuttgart’s
airport and benefits from easy access to public transport and the B312 and B297 highways.

Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
"This is a well-located asset acquired at an attractive price point and underpinned by a long WALE,
providing a stable income from day one. At the same time, it is in line with our usual strategy of
acquiring assets where there is an opportunity for us to add value through our platform driven asset
management initiatives, such as reducing vacancy, while also benefiting from potential
redevelopment opportunities.
“This will be the 9th German asset, including a land parcel, acquired by Sirius Real Estate in this
financial year, bringing our total deployment to €153.9m, following an extremely active period for the
business as we continue to build momentum across our key investment markets, while also extending
our reach into the UK following our recent acquisition of the BizSpace platform. Following the success
of two oversubscribed bond issuances and an equity capital raise in the last six months, Sirius’ balance
sheet remains strong and we are well positioned to continue to source attractive investment

                                                - ENDS -

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


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:

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Follow us on Twitter at @SiriusRE

JSE Sponsor
PSG Capital

Date: 01-12-2021 09:00:00
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