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

2 March 2021 

Sirius Real Estate Limited

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

SIRIUS COMPLETES ACQUISITION OF 8,800 SQM STUTTGART BUSINESS PARK FOR €9.2 MILLION

Acquisition immediately adjacent to Sirius' existing asset at Fellbach, near Stuttgart, providing a range of operational and asset management opportunities

Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany, announces that it has completed the acquisition of a 8,800 sqm mixed-use business park in Fellbach, near Stuttgart, for a total acquisition cost of €9.2 million, reflecting an EPRA net initial yield of 6.0%.

This investment follows the Company's acquisition in August 2018 of a business park located in Fellbach where, as a result of the application of a range of asset management initiatives, occupancy has increased to in excess of 90% from 79% when first acquired. The new asset sits immediately adjacent to the Company's existing site, creating an enlarged business park comprising over 36,000 sqm of gross lettable area. Sirius acquired the business park from a local family office using existing cash resources.

The park is situated in a well-developed commercial area 7.8 km to the north-west of Stuttgart and benefits from easy access to public transport and the major B14 motorway.  Built in the 1970's, the new asset has 8,800 sqm of gross lettable area and 200 parking spaces, and comprises a range of uses including office space (62%), warehouse/logistics (32%) and other space (6%).

The business park is currently 94.6% let to Daimler AG as the single tenant, at an average rent of €7.04 per sqm, producing a total annualised rental income of approximately €730,000.  Daimler is expected to vacate the office element of the property by the end of June 2021, and the warehouse element of the property by December 2021, after which Sirius will seek to implement a range of asset management initiatives including the upgrade of space in order to capture local market demand for office and warehouse space.

Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: 

"This high-quality asset deepens our exposure to a commercial market in which we already have extensive experience. The acquisition will provide a number of compelling operational synergies and widens our range of asset management options particularly when considered alongside our existing adjacent Fellbach business park. With the major tenant moving out shortly after completion our focus is on growing income through the capture of reversion and reduction in service charge leakage. We continue to benefit from a strong balance sheet allowing us to maintain our strategy of acquisitive growth in and around Germany's key cities."

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

SiriusRealEstate@fticonsulting.com 

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 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.

For more information, please visit: www.sirius-real-estate.com 

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