Sir­ius sale of as­set for R1.2bn ‘sig­nif­i­cant’

The Star Early Edition - - BUSINESS REPORT - Sandile Mchunu

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.

Pro­gress­ing well

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.

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