Business
Sirius joint venture with AXA Investment Managers
Sirius joint venture with AXA Investment Managers.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 5166R Sirius Real Estate Limited 01 March 2019 \n\n1 March 2019\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\n \nSirius forms 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 it has formed a real estate investment joint venture (the \"JV\") with clients represented by AXA Investment Managers - Real Assets (\"AXA IM - Real Assets\") in which AXA IM - Real Assets, acting on behalf of its clients, will own a 65% interest and Sirius will own the balance of 35%. The JV will be called Titanium.\nThe JV will initially be formed by AXA IM - Real Assets acquiring, on behalf of its clients, from Sirius a 65% stake in five single asset special purpose vehicles (\"SPVs\") through which it currently owns two business parks located in Berlin (Berlin Borsig and Berlin Tempelhof) and one in each of Mainz, Nurnberg and Bayreuth. The business parks 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 last reported book value as at 30 September 2018 which was €141.1 million. 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 costs. \nSirius has signed an agreement to continue the operation of the assets, using its fully integrated operating platform, on a fee basis. The JV may seek to acquire further assets in Germany, with a clearly defined strategy that will not conflict with Sirius's existing business. \nRationale\nAs a result of entering the JV, Sirius will have significant resources to invest both for itself and for the JV. Through the newly established relationship with AXA IM - Real Assets, the Company may be able to consider much larger assets and portfolios of assets, with a wider range of return profiles that it might previously have overlooked or have been unable to pursue whilst allowing the Company to derive further benefits of scale. Proceeds from the transaction to...