Sirius notarises park in Norderstedt, Hamburg

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

14 September 2020                                                   

Sirius Real Estate Limited

("Sirius Real Estate", "Sirius" or the "Company")

Sirius notarises a business park in Norderstedt, Hamburg

Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announces that it has notarised the acquisition of a business park in Norderstedt, just north of central Hamburg, for a total of €9.1 million (including acquisition costs), reflecting an EPRA net initial yield of 7.6%. The acquisition will be funded using existing cash resources of approximately €127.0 million, €108.5 million of which is unrestricted. This will leave the Company with just under €100.0 million of unrestricted cash after the acquisition of Norderstedt is taken into account. Completion of the acquisition is expected in December 2020.

Acquisition Details

Constructed between 1969 and 1991, the site provides 12,600 sqm of mixed use net lettable space of which 68% is warehouse, 29% is office and 3% is other space.  It has 118 parking spaces and sits on a total plot size of 18,500 sqm. The property is located 15 km north of Hamburg city centre and 4.5 km north of Hamburg International Airport.

The asset is 100% let to 12 tenants at an average rate per sqm of €4.99, with a WALT of 3.2 years and total gross rental income of €783,000 per annum. This acquisition complements the strategy to establish a cluster of properties in and around the port city of Hamburg, following the decision to exit from Bremen with the sale of €25.6 million of assets there in the financial year ended 31 March 2019. The Norderstedt site expands Sirius's portfolio in Hamburg to four business parks and most importantly gives Sirius a presence in the north of Hamburg, with good access to Hamburg International Airport.

Commenting on this acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "This is another good acquisition within the Greater Hamburg Metropolitan area, increasing the total number of assets within the region to four with a total lettable area of more than 95,000 sqm. This transaction at an EPRA net initial yield of 7.6% demonstrates Sirius' ability to access good quality high yielding assets in and around the 7 key cities in Germany."

For further information:

Sirius Real Estate

Andrew Coombs, CEO/Alistair Marks, CFO

Tel: +49 (0)30 285 010 110

Tavistock (Financial PR)

Jeremy Carey/James Verstringhe

Tel: +44 (0)20 7920 3150/+ 44 (0)7836 734 625

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 JSE Limited.  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

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/

Follow us on Twitter at @SiriusRE

LEI: 213800NURUF5W8QSK566

JSE Sponsor

PSG Capital