2 December 2019
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius acquires €20 million office complex near Munich Airport
Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announces that it has acquired an office complex in Hallbergmoos, near Munich Airport, for €20.2 million (including acquisition costs). The vendor is KCM Invest AG, a Munich based investment firm.
Constructed in 1993, the property is located on Lilienthalstrasse in Hallbergmoos which is 29 km northeast of Munich, where Sirius already owns two business parks. It provides a total of 19,600 sqm of net lettable space (16,300 sqm of office, 2,200 sqm of warehouse and 1,100 sqm of other space), over three floors, together with 336 parking spaces on a total plot size of 14,943 sqm.
The asset is 55% let to 28 tenants, producing an annual rental income of € 960,000 at an average rate of €6.67 per sqm and a remaining WALT of 2.4 years. Tenants include Heinz von Heiden GmbH, Mentor Deutschland GmbH and Dorma Time + Access GmbH. The purchase price (including acquisition costs) reflects an EPRA net initial yield of 3.4% owing to the 45% vacancy in the building.
The asset is being acquired on an unencumbered basis, funded by a combination of funds generated from the disposal of five Sirius assets to the Titanium joint venture with AXA Investment Managers - Real Assets and from the recent extension of the Berlin Hyp Amber bank facility.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "This asset fits well with our acquisition criteria, in particular the low capital value, the level of vacancy within the building and the low average rent compared to the local market. It offers a great opportunity to add significant value by playing to the strengths of our integrated business model and track record of maximising occupation and growing rental levels."
For further information:
Sirius Real Estate
Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285010110
Tavistock (Financial PR)
Jeremy Carey/James Verstringhe
Tel: +44 (0)20 7920 3150
Email: [email protected]
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 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.
In July 2019, the Company completed the formation of its Titanium real estate investment joint venture with clients represented by AXA Investment Managers - Real Assets. Titanium was formed through the acquisition by AXA IM - Real Assets, on behalf of its clients, from Sirius, of a 65% stake in five business parks across Germany. Sirius will retain the remaining 35% and will act as operator of the assets, on a fee basis. Subject to suitable investment opportunities, AXA IM - Real Assets and Sirius may consider opportunities to grow the JV's portfolio primarily through the acquisition of larger stabilised business park assets and portfolios of assets with strong tenant profiles and occupancy. 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 JV does not conflict with Sirius's existing business.
For more information, please visit: www.sirius-real-estate.com
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