Business
Sirius announces acquisition & disposal of assets
Sirius announces acquisition & disposal of assets.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n\nSIRIUS REAL ESTATE LIMITED\n(Incorporated in Guernsey)\nCompany Number: 46442\nJSE Share Code: SRE\nLSE (GBP) Share Code: SRE\nLEI: 213800NURUF5W8QSK566\nISIN Code: GG00B1W3VF54\n \n27 March 2025\n \nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\", the \"Company\" or the \"Group\")\n \nSirius Real Estate to acquire Mönchengladbach business park for €17.2 million and dispose of BizSpace Cardiff for £5.1 million\n \nSirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has notarised the acquisition of a multi-tenanted business park in Mönchengladbach for €17.21 million (total acquisition costs), representing an 8.21% Net Initial Yield (NIY).\n \nFollowing the recent successful disposal of its BizSpace Tyseley business park at a 20% premium to book value, Sirius has also exchanged contracts for the sale of its BizSpace Cardiff site for £5.075 million, representing a 10% premium to current book value. The sale of Cardiff is the fourth disposal in the U.K. this current financial year, with these sales having collectively achieved an average premium of 13.5% to book value.\n \nThe Mönchengladbach site is being acquired through a sale and partial leaseback agreement with the current owner, SMS group, a globally recognised engineering and plant construction company which occupies approximately 26% of the site. The new leases with SMS group, which is one of the largest employers in Mönchengladbach and has its global headquarters adjacent to the site, have been secured on terms between 3 and 10 years, with a WALE of six years. These leases will contribute materially to the asset's day one rent roll of €2.43 million.\n \nThe 124,599 sqm business park currently has a gross lettable area of 70,899 sqm, 65% of which is production and warehouse space, and includes a 25,773 sqm car park with around 1,000 spaces. It is currently 66% occupied, leaving plenty of value-add opportunity for the Sirius operating platform. \n \nThe Mönchengladbach asset is located close to the major economic hubs of Düsseldorf, Duisburg and Cologne in Germany's North Rhine-Westphalia, a region in which Sirius already owns a number of business parks, thereby providing operational synergie...