Sirius Real Estate Limited · LSE:SRE
Sirius Real Estate — Investor Day (October 2024)
30 slides from Sirius Real Estate's investor day presentation, Oct 10, 2024
Slide 1: Sirius Investor Day: BizSpace Gloucester Vantage Point
SIRIUS INVESTOR DAY BIZSPACE GLOUCESTER VANTAGE POINT 10 OCTOBER 2024 1
Slide 2: Setting the Scene: Bizspace under Sirius ownership
SETTING THE SCENE Bizspace under Sirius ownership November 2021 At acquisition BizSpace had a rent roll of £41.9m and EBITDA of £21.0m Sirius acquires BizSpace Today it has a rent roll in excess of £65m and EBITDA in excess of £36m Growth achieved through a focus on driving rate ↑35%, underpinned by
Slide 3: £121.3m in 8 acquired UK assets
£121.3M (€144M) IN 8 ACQUIRED UK ASSETS Example acquisitions below: Banbury North London Portfolio (3) Vantage Point Business Park* (1) Acquisition Price: £25.0m Acquisition Price: £33.5m Acquisition Price: £47.0m Date of Acquisition: Jun 2024 Date of Acquisition: Nov 2023 Date of Acquisition: Apr 2
Slide 4: Acquisition of Gloucester
ACQUISITION OF GLOUCESTER Largest acquisition in the past year £47m 10.2% 1.3m 81% acquisition NIY sq. feet occupancy lettable area Opportunity #1 Let up vacancy Opportunity #2 Asset manage tenant mix and utilisation Opportunity #3 Development potential on surplus land 4
Slide 5: The Acquisition of Vantage Point
THE ACQUISITION OF VANTAGE POINT
Slide 6: History of the Site
HISTORY OF Rank Precision Industries, a subsidiary THE SITE of the Rank Group, designed & produced the first photo copier – Xerox 914 at the site. The success of the Xerox 914 saw the site expand. 1958 British Acoustic Films starts to Rank Xerox acquire the produce wartime devices for organisation s
Slide 7: History of the Site
HISTORY OF Technical advancements and BizSpace acquire the business THE SITE global competition resulted in park for £47m, with over 100 Xerox undertaking a significant tenants and approximately company reorganisation which 2,500 employees coming onto lead to the site being downsized. the site each
Slide 8: What did we end up buying
WHAT DID WE END UP BUYING NIY of 10.2% & Capital value of £28 psf Area Purchas Element NOI (sq ft) e Price Original Site 1,352k £4.1m Mews 30k £0.1m Yard 60k £0.1m Property Total 1,442k £4.3m £40.5m Solar Business - £0.8m £6.5m Total 1,442k £5.1m £47m 8
Slide 9: Solar Business
SOLAR BUSINESS UK Government Backed – Feed In Tariff ("FiT") Electricity can be sold to tenants Index linked payments PV Panels shelf life until 2045 1/3 of on-site energy covered Future Opportunities: - Expansion of PV onto other buildings. - Battery storage options to reduce the amount exported to
Slide 10: So what do we like about this site?
So what do we like about this site? Purchased at £33 psf Development Opportunities: a significant discount to - Mews conversion to residential replacement value - Front Yard development - Building 5 conversion to supermarket/residential Current rents: £3.50psf offering reversion Expansion Potential:
Slide 11: The Sirius Capability
THE SIRIUS CAPABILITY 11
Slide 12: Sirius Business Park Berlin Borsig
SIRIUS BUSINESS PARK BERLIN BORSIG Long - term Valuation Growth in m EUR 2008 (Acquisition) 2019 (Sale to JV) 2024 (Current Value) 2030 (Future Value) 97 74 50 €31,1 m 12
Slide 13: Phase I: Initial Asset Management and Stabilization of Income
PHASE I Initial Asset Management phase and Stabilization of Income 13
Slide 14: Asset Management phase
ASSET Remeasured the site and allocated common space to existing leases Stabilised the major tenants on site by re- gearing their leases and achieving +0.25 EUR MANAGEMENT generating additional rental income + improved service charge recovery uplift psf as well as increasing their rented area by 150
Slide 15: Phase II: Asset Management phase
PHASE II Asset Management phase 15
Slide 16: Asset Management: Injected into the JV 2019
ASSET MANAGEMENT Key Improvements 1. Optimized service charge recovery through Sirius Injected into the JV 2019 leases and prepayment adjustments 2. Replaced low-paying tenants with stronger, higher- value tenants BEFORE AFTER 3. Created Multi-Let Buildings 4. Refurbished sub-optimal spaces Seed ass
Slide 17: Roadmap to €100 Mio
JV SALE TO CURRENT VALUE (5 YEARS) Valuation in M EUR In July 2019, 65% stake of the asset was sold into the Titanium Joint Venture with AXA Investment Managers keeping a share of the profit Roadmap to € 100 Mio and generating asset management fees for Sirius. +€0.13/sqf uplift Further re-geared the
Slide 18: Roadmap to €100 Mio
Roadmap to € 100 Mio 18
Slide 19: Development Area capex and ERV
Development Area 1 29,558 9,200,000 SqFt Capex 655,571 ERV Development Area 2 30,548 8,625,000 SqFt Capex 586,957 ERV Total 60,106 SqFt 17,825,000 Capex 1,242,528 11% ERV IRR 19
Slide 20: Roadmap to €100 Million
ROADMAP TO € 100 MILLION Development Area 1 29,558 9,200,000 4,93 SqFt Capex 655,571 ERV Development Area 2 30,548 8,625,000 2024 2030 SqFt Capex Current New Building Other Asset 586,957 Valuation Cost Mgmt ERV Total 60,106 SqFt 17,825,000 Capex 1,242,528 11% ERV IRR 20
Slide 21: Key capabilities utilized in the development of Berlin Borsig
THE KEY CAPABILITIES 01. Rigorous management of large industrial space UTILIZED IN THE DEVELOPMENT OF 02 Data led operating platform BERLIN BORSIG 03 Clear line of sight into the local market And we look forward to participating in the 04 Application Group’s journeyofwith local strategies to access
Slide 22: The Solar Opportunity
THE SOLAR OPPORTUNITY Delivering on our E-strategy to provide energy security and an attractive income stream 22
Slide 23: BizSpace Vantage Point: The Current Solar Opportunity
BizSpace Vantage Point The Current Solar Opportunity 23
Slide 24: 3 Arrays, 1.5 MWp
3 Arrays Spread across 3 buildings (1, 3 & 6) with 5,300 panels 1.5 MWp Maximum system capacity per year 7.5 Year pay back 24
Slide 25: £0.51/KWh Feed-in-Tariff
£0.51/KWh Selling excess energy back to the grid via Feed-in-Tariff £825.000 Annual electricity revenue 25
Slide 26: Annual electricity generation and consumption
1,150 GWh 3.400 GWh Annual electricity generation by PV Annual electricity requirement system of the site (per annum) 78% Electricity consumed by tenants 227 tCO2 Equivalent CO2 emissions 22% saving (per year) Electricity fed into the public grid 26
Slide 27: BizSpace Vantage Point: Future Outlook
BizSpace Vantage Point Future Outlook 27
Slide 28: Battery installation, panel maintenance and upgrade
Installation of Maintenance of Upgrade of solar onsite battery existing panels panels post 2031 - Enables storage of excess - 3 year programme initiated to - Estimated panel upgrade from energy clean existing solar panels 280w to 440w - Additional Revenue estimation - Estimated increase of 10% - Wou
Slide 29: Summary
SUMMARY 35% 8 £28 Growth achieved by UK acquisitions psf purchase, offering excellent expansion and development opportunities BizSpace in the 3 during that period years following its acquisition 430t CO2 emissions can be saved with solar energy Gloucester Vantage Point Experience in Germany enables
Slide 30: Thank You
Thank You