Business
Update on acquisitions and disposals
Update on acquisitions and disposals.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 8242G Sirius Real Estate Limited 01 June 2017 \n\n1 June 2017\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\" or the \"Company\")\nUpdate on Acquisitions and the Sale of Mature Assets\n&\nResults Date\nSirius Real Estate, a leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the following update, regarding €18m of disposals of mature assets and €66.4m of property acquisitions, all progressed over the past six weeks, as follows:\n· Notarisation of the sale of a mature asset in Kiel for €7m;\n· Completion of the €11m Dusseldorf sale;\n· Notarisation of the acquisition of three sites with a combined value of €43.5m; and \n· Completion of the €22.9m Cologne acquisition. \nThe Company has been successfully pursuing its policy of re-cycling capital into new assets with greater opportunities to extract value through its asset management activities.\nDisposals\nOn 21 April 2017, the Group notarised the sale of a mature asset located in Kiel for €7.0m, in line with book value and representing an EPRA net initial yield of 7.4% (including acquisition costs). Since the acquisition of this mixed-use business park in 2007 at less than half of the disposal price, Sirius's asset management activity has increased net operating income from a small loss to €0.56m and increased the occupancy from 19% to 92% over a net lettable area of 10,000 sqm.\nOn 19 May 2017, the Group completed the sale of a mature asset located in Dusseldorf for €11.0m, representing an EPRA net initial yield of 7.2% (including acquisition costs). Since this site was acquired in 2008, Sirius's asset management activity has significantly improved the tenant mix and lease terms. The sale is at a 25% premium to the site's book value of €8.7m as at 30 September 2016. The asset is a mixed-use business park generating €0.85m of net operating income with occupancy of 96% over a net lettable area of 16,600 sqm. \nAcquisitions\nOn 3 May 2017, the Group notarised the acquisition of a property in Grasbrunn, an area on the Munich ring road. The property is located in a well-developed commercial area and is being purchased for a total consideration of ...