2 May 2018
Sirius Real Estate Limited
("Sirius Real Estate" or the "Company")
€15.5 million Sale of Bremen Brinkman Business Park
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the completion of the sale of its Bremen Brinkman business park for €15.5 million.
Bremen Brinkman is a non-core site as it is located on the north coast of Germany outside of Sirius's target regions. The buildings are also uniquely configured for tobacco manufacturing which due to the costs and complexity involved has limited the potential for investment to reconfigure the space. The asset is being sold in line with book value. At time of sale the asset generated net operating income of €0.9m.
As at 31 March 2018 the site contained 48,700 sqm of vacant space which, following completion, results in a positive impact on the Group's overall occupancy level.
The site is debt-free, so the sale proceeds will be wholly reinvested into new sites in core locations where there is greater value creation potential.
Andrew Coombs Chief Executive Officer of Sirius Real Estate, said: "Bremen Brinkman was one of two non-core sites in our portfolio. Its unique structure made it overly expensive for us to reconfigure and it was outside of our target regions. Consequently, disposing of this asset at book value means we have unlocked €15.5 million of capital that can now be re-invested into our asset recycling programme where we know we can create significant additional value in key markets."
For further information:
Sirius Real Estate Andrew Coombs, CEO Alistair Marks, CFO |
+49 (0)30 285010110 |
Novella Tim Robertson Toby Andrews |
+44 (0)20 3151 7008 |
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.
For more information, please visit: www.sirius-real-estate.com
Images of the Sirius property portfolio are available from: https://www.flickr.com/photos/sirius_re/
Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566
