Business
Sirius completes jv with AXA Investment Managers
Sirius completes jv with AXA Investment Managers.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 5745H Sirius Real Estate Limited 01 August 2019 \n\n1 August 2019\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n \nSirius completes German business park joint venture with AXA Investment Managers - Real Assets\n \nSirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announces that, further to its announcement on 1 March 2019, having fulfilled all the closing conditions, it has completed the formation of the Titanium real estate investment joint venture (the \"JV\" or \"Titanium\" ) with clients represented by AXA Investment Managers - Real Assets (\"AXA IM - Real Assets\").\nTitanium has been formed through the acquisition by AXA IM - Real Assets, on behalf of its clients, from Sirius, of a 65% stake in five business parks across Germany, of which two are located in Berlin (Berlin Borsig and Berlin Tempelhof) and the remainder in Mainz, Nurnberg and Bayreuth. Sirius will retain the remaining 35%.\nThe ongoing operation and management of the assets contained in the JV is governed by an Operational Management Contract, which ensures Sirius will continue to act as operator of the assets, on a fee basis. The JV will also be able to draw on the expertise of AXA IM - Real Assets' team of local in-house experts.\nSirius has provided guarantees and warranties to AXA IM - Real Assets which are customary for a transaction of this nature. The transaction also includes standard drag-along rights in favour of the majority shareholder, as well as tag-along rights in favour of Sirius, and dispute resolution clauses. The business parks forming the JV provide a combination of office, warehouse, industrial and storage space. The implied property value of €168 million equates to a gross yield for the portfolio of 6.2% and reflects a premium to the book value as at 30 September 2018, being the last valuation date prior to the transaction being agreed, which was €141.1 million. Following the refinancing of the JV portfolio with a loan of €84 million at a fixed interest rate of 1.38%, the total cash commitment from AXA IM - Real Assets amounts to €43.9 million. The transaction is expected to generate total cash proceeds of more than €70 million for Sirius after refinancing and expected related c...