Sirius completes €3.8m sale of its Bremen Hag Business Park

SIRIUS Real Estate, the JSE and London Stock Exchange-listed operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the sale of its Bremen Hag Business Park for €3.8 million (R61.77m).

The company said yesterday that it had also notarised the sale of its Bremen Dötlinger-Strasse Business Park for €6.3m.

The sale price of both assets was in line with book value.

Andrew Coombs, the chief executive of Sirius, said that when the Bremen Dötlinger Strasse sale was completed in March next year, it would conclude the company’s strategy to exit Bremen and allow Sirius to focus its sights on Germany’s “big seven” cities.

Coombs said that the proceeds of both these sales would also provide additional capital to invest in the current portfolio as well as for new acquisitions.

The sale of Bremen Hag would also remove 48 000m2 of vacant space and increase overall occupancy of Sirius’s current portfolio by more than 2.5 percent.

Sirius said that Bremen Hag was a very large site located next to the container port in Bremen Harbour. This held limited appeal among prospective tenants and was loss-making, with a net operating expense of about €300 000 and occupancy of less than 19 percent.

Shares in Sirius closed unchanged on the JSE yesterday at R10.88.