Sirius Real Estate Limited Acquisition (8560V)

TIDMSRE

RNS Number : 8560V

Sirius Real Estate Limited

02 February 2017

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

THIS ANNOUNCEMENT IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES. IT IS NOT A PROSPECTUS OR PROSPECTUS EQUIVALENT DOCUMENT. INVESTORS SHOULD NOT PURCHASE ANY SHARES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT SOLELY ON THE BASIS OF INFORMATION CONTAINED IN THE PROSPECTUS TO BE PUBLISHED BY SIRIUS REAL ESTATE LIMITED IN CONNECTION WITH THE PROPOSED MOVE TO THE MAIN MARKET.

2 February 2017

Sirius Real Estate Limited

("Sirius Real Estate" or the "Company")

Completes Acquisitions in Krefeld and Dreieich for EUR7.5 million

Sirius Real Estate, a leading operator of branded business parks providing conventional space and flexible workspace in Germany, is pleased to announce the completion of the acquisition of Krefeld Business Park and an office building in Dreieich for a combined total consideration of EUR7.5 million (including acquisition costs).

In October 2016, the Group notarised the purchase of Krefeld Business Park for a total consideration of EUR2.9 million, representing a 13.1% EPRA net initial yield (equating to EUR457 per sqm of capital value). The property is a single let business park totalling 6,335 square metres of office and warehouse space. Currently the site is producing annualised income of EUR0.4 million and the sole tenant will be conducting a staged exit over the next 14 months creating an opportunity to re-let the site at a higher rate over a longer term.

In November 2016, the Group notarised the purchase of an office building located in Dreieich for a total consideration of EUR4.6 million. The site contains significant under-utilised and vacant space which represents an excellent development opportunity. It is being acquired on a 0.9% EPRA net initial yield (equating to EUR355 per sqm of capital value).

As previously announced, the Company is in the process of moving to the main markets of the London Stock Exchange ("LSE") and the Johannesburg Stock Exchange ("JSE"). Due to the earlier than expected completion of these transactions, the publication of the prospectus will be slightly later than previously announced. This delay is not expected to impact the admission date of 6 March 2017. We will update the market as soon as practicable following the prospectus being published.

Andrew Coombs, Chief Executive Officer, said, "We moved quickly to complete these two opportunistic acquisitions which we have bought without bank financing and now have the opportunity to significantly increase the rental income from them both. We are also continuing to make good progress elsewhere on our acquisition and disposal programme and remain on track to move up to the main markets of the LSE and JSE."

Enquiries:

Sirius Real Estate [phone]

Andrew Coombs, CEO

Alistair Marks, CFO

Peel Hunt [phone]

Capel Irwin

Edward Fox

Canaccord Genuity Limited [phone]

Bruce Garrow

Chris Connors

JSE Sponsor: PSG Capital [phone]

David Tosi

Willie Honeyball

Novella [phone]

Tim Robertson

Toby Andrews

This information is provided by RNS

The company news service from the London Stock Exchange

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February 02, 2017 04:00 ET (09:00 GMT)