Acquisition in Geilenkirchen and Disposal of Asset

LSE (GBP) Share Code: SRE

Sirius Real Estate Limited

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

Acquisition in Geilenkirchen, Germany and Disposal of Non-Core UK Asset

Sirius Real Estate, the leading operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, has continued to execute on its strong acquisition pipeline, having notarised the purchase of a light industrial property in Geilenkirchen, Germany, for a total consideration of €12.9 million.

The asset was acquired by way of a sale-and-leaseback transaction, with a precision engineering business that specialises in processing sheet metal using laser technology, which has entered into a triple net lease on the entire property. The acquisition reflects a net initial yield of 9.3% on a property that is less than 25 years old.

The property is in a strategic location in Geilenkirchen, west of Düsseldorf, 33km from Sirius' existing site in Aachen. In close proximity to the Belgian and Dutch borders, the area is known as the Euregio Maas-Rhine and is one of Europe's most dynamic economic regions, benefitting from a strong industrial base. Geilenkirchen is also home to a key NATO airbase, further contributing to the area's economic stability.

The acquisition is in line with Sirius' strategy of acquiring well-located assets with secure income streams and value-add potential, at attractive yields.

UK Disposal

As part of its ongoing UK portfolio optimisation strategy, Sirius has also exchanged contracts for the disposal of a small non-core asset in Huddersfield to a private individual for a total consideration of £1.55 million. The transaction was concluded at a 7% premium to the asset's most recent book value and reflects a disposal yield of 8.1%, assuming standard purchaser costs. Proceeds from the sale will be redeployed into opportunities within the Group's portfolio, in line with Sirius' capital allocation strategy.

Andrew Coombs, CEO, commented: "This acquisition provides us with a well-located asset at an attractive yield and further strengthens our footprint in the Euregio Maas-Rhine industrial region. With Geilenkirchen being home to a key NATO airbase, it is also in line with our ambition of ensuring that Sirius' portfolio is well placed to benefit from an increased focus on defence investment, particularly following the news earlier this week that Germany's defence spending is now heading towards a new target of 5% of GDP. Following on from the Reinsberg and Monchengladbach acquisitions announced earlier this year, this acquisition presented Sirius with another sale and leaseback opportunity in a strong location at an attractive yield. The purchase helps another business owner to extract value from its property assets while maintaining operations on site, while delivering strong income returns for the Company."

"Following last year's equity fundraise and bond issuances, as well as our recently announced new €150 million unsecured revolving credit facility, we have the flexibility and resources to continue to make accretive acquisitions in Germany and the UK at this opportune point in the market cycle."

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