Sirius sale of asset for R1.2bn ‘significant’
SIRIUS Real Estate said on Friday that it had notarised the sale of its Rupert Mayer Straße business park in Munich, Germany for €85 million (R1.2 billion).
The company had further agreed to lease back and manage the asset for six years.
Sirius Real Estate said it continually reviewed its portfolio with a view to disposing of mature and non-core assets and recycling equity into assets with higher opportunities, in order to increase total returns from the portfolio.
Andrew Coombs, the chief executive Sirius Real Estate, said: “The sale of the Rupert Mayer Straße business park in Munich is significant, as it is our first sale of a major mature core site under our strategy to recycle capital into higher opportunity assets where we can increase income levels and capital values and thereby increase total returns to shareholders.”
Coombs said it was encouraging to have achieved a sale price of 9percent above book value for this site.
The company with a market capitalisation of more than R6bn has added four new acquisitions to its portfolio.
The group made two disposals towards the end of last year. Last September the group notarised the sale of one of its non-core assets in Merseburg for €5.9m and this is progressing well with an expected completion date of March.
Last October the group further notarised the disposal of 8 155m² of land at its CöllnParc site for €1.5m, which represents a 41percent uplift on the book value as at September 30, 2016. The sale of this land was completed at the end of November last year.
The group was also active in the acquisitions front as four new acquisitions were made. The group has acquired these business parks for €34.9m.
“The four new acquisitions provide us with significant value-add opportunities and we are looking forward to incorporating these into our asset management and investment activities and getting to work on deriving significant additional value from them all,” said Coombs.
The latest developments in the company have given the group new impetus and it believes it is moving in the right direction. “As we have said, we are making good progress towards moving up to the main markets of both the London and Johannesburg Stock Exchanges and expect to complete these moves in or just before March 2017,” he said.
The company said it should have about €70m from existing cash resources and debt facilities for further acquisitions following the completion of the above acquisitions and disposals.