Business
Acquisition update
Acquisition update.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 2165Y Sirius Real Estate Limited 04 December 2017 \n\nThe Company considers this announcement to contain inside information which is disclosed in accordance with the Market Abuse Regulation\n \n4 December 2017\nSirius Real Estate Limited\n(\"Sirius Real Estate\" or the \"Company\")\nCompletion of Acquisition in Hamburg for €8.4m \nand completion of a Land Sale in Berlin for €0.95m\n \nSirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the completion of an acquisition for €8.4 million and the sale of non-income producing land in Berlin for €0.95 million. Dates of notarisation and the details of the two transactions were announced with the Company's trading statement on 9 October 2017.\nIn summary:\n· The Hamburg-Hummelsbüttel acquisition for €8.4 million (including acquisition costs) is an office building and has 11,223 sqm of lettable space and is currently 100% vacant providing substantial value-add potential. \n \n· The sale of 5,000 sqm of non-income producing land on the outskirts of the Tempelhof business park in Berlin for €0.95 million, represents a significant premium to book value and a major opportunity for this site to re-invest the proceeds into accretive new projects.\nAndrew Coombs Chief Executive Officer of Sirius Real Estate, said:\n\"These are two good transactions for Sirius and in the case of the Hamburg acquisition, it provides excellent scope to use our intensive asset management skills to add recurring income and increase capital values. Additionally, Hamburg is a new and key market for us, and with this site and another currently under notarisation we are well positioned to make a strong entry. \nThe land sale at a significant premium to book value reflects our strategy to maximise shareholder returns at the asset level by crystallising profits on non-income producing assets and finding the most accretive sources to fund our capex programme. The proceeds from this sale will be invested to convert suboptimal space into high-quality offices on the same business park from which we expect to generate a high return.\"\n \nFor further information:\n\n\n\n\nSirius Real Estate\nAndrew Coombs, CEO\nAlistair Marks, CFO ...