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Sirius Real Estate completes non-core asset sale programme

Sirius Real Estate completes non-core asset sale programme – Sirius Real Estate (SRE), a leading operator of branded business parks providing conventional and flexible workspace in Germany, has completed the sale of its Bremen Dötlinger Strasse Business Park, to a private investor, for €6.3m. The sale is in line with the book value at 30 September 2018 and reflects a European Public Real Estate Association (EPRA) net yield of 5.1%.

The sales marks the completion of SRE’s recent programme of trimming its portfolio of non-core assets, which, prior to today’s sale, have generated proceeds of €27.4m.

SRE comments that the Bremen Dötlinger property comprises 10,273 square meters of mixed-use space, which is 43% vacant and requires significant capital expenditure to attract new tenants.

Andrew Coombs, CEO of SRE, said: “With the disposal of these non-core assets and the complete withdrawal from the non-core location of Bremen, we are now focused on Germany’s “big seven” cities. The proceeds from these sales provide us with additional capital to invest in our capex investment programme on the current portfolio and on new acquisitions.”

About SRE

SRE 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 describes itself as a leading operator of branded business parks providing conventional space and flexible workspace in Germany.

The company explains its core strategy as being the acquisition of business parks at attractive yields, the integration of these business parks into its network of sites under the its 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.

SRE says that it aims to deliver attractive risk adjusted 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. The trust says that, once sites are mature, and net income and values have been optimised, it may consider their disposal in order to recycle equity into assets which present greater opportunity for the group’s asset management skills.

SRE: Sirius Real Estate completes non-core asset sale programme

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