Business
EUR85m Sale and Leaseback of Munich business park
EUR85m Sale and Leaseback of Munich business park.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 4925T Sirius Real Estate Limited 06 January 2017 \n\nThe Company considers this announcement to contain inside information which is disclosed in accordance with the Market Abuse Regulation\n6 January 2017\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\nProposed €85m sale and leaseback of Munich business park\nand \nan update on four acquisitions and two disposals\nSirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the Company has notarised the sale of its Rupert Mayer Str. business park in Munich for €85 million and has agreed to lease back and manage the asset for six years. \nThe Company also provides an update on progress being made towards the completion of two further disposals for €7.4 million as well as the acquisition of four further business parks for €34.9 million.\nSale of Rupert Mayer Str.\nThe Company continually reviews its portfolio with a view to disposing of mature and non-core assets and recycling equity into assets with higher opportunities, in order to increase total returns from the portfolio. \nOver the eight years since the Rupert Mayer Str. site was acquired, Sirius's asset management activity has increased net operating income from €4.4 million to €5.3 million with the value of the asset increasing by 48% from the €57.5 million it cost to acquire. \nThe asset was purchased from Siemens who occupied almost 100% of the site when acquired and subsequently completely vacated the business park. The Sirius asset management team has successfully filled the site with a mixture of conventional and flexible workspace leases and it is now 88% occupied.\nThe sale price of €85.0 million represents a 9% premium to Sirius's book value of €78.1 million as at 30 September 2016 and an EPRA net initial yield for the purchaser of 5.7% (including acquisition costs). \nThe purchaser is Fiduciary Capital based in Munich. The sale has been structured as a sale and leaseback with a lease of six years, with a rent of c. €5.0 million per annum for the first five years and in the final year at a cost equal to the net operating income of the site. Sirius will continue to receive the net income of the site for the term of the lease which is currently at ...