Disposal of Kassel business park
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LSE (GBP) Share Code: SRE
Sirius Real Estate Limited
("Sirius Real Estate", "Sirius" or the "Company")
Sirius Real Estate continues asset recycling programme with disposal of Kassel business park at premium to book value
Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has completed the disposal of a business park in Kassel, in Germany's southwest Hesse region, for €7.3 million, representing a net initial yield ("NIY") of 6.0%.
The disposal was achieved at an approximate 5% premium to book value (March 2023: €6.95 million). The asset, which is 92% let, comprises a total lettable area of 8,342 sqm of industrial, office, logistics and other space within a 16,217 sqm plot size.
The Company also announces that it has now completed the £9.5m acquisition of two mixed use industrial assets for its BizSpace subsidiary in the U.K., exchange of which was announced on 27 July 2023. The two assets are located in Liverpool and Barnsley with a combined area of 71,957 sq ft of predominantly workshop space. The purchase price represents a NIY of 9.6% (total acquisition cost).
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "Our disposal of Kassel at a premium to book value has allowed us to capitalise on demand for this high quality property. The sale of this asset at a 6.0% NIY, coupled with the completion of our acquisition of the properties in Liverpool and Barnsley at a 9.6% NIY represents a good example of our strategy of recycling capital from mature assets into those where we believe we can grow income and value through our operating platform. In the current market we are focused on improving rental levels and providing tenants with the flexibility and services they need. We see plenty of opportunities to continue creating value through asset management across the BizSpace portfolio, as we have successfully achieved through the Sirius platform with our German assets."
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