Sir­ius yet to sate ap­petite for as­sets

€65m avail­able for buys

The Star Early Edition - - COMPANIES - Roy Cokayne

SIR­IUS Real Es­tate, which owns and op­er­ates a port­fo­lio of branded busi­ness parks in Ger­many, plans to con­tinue its ac­qui­si­tion pro­gramme and has the resources to ac­quire €65 mil­lion (R937.87m) in as­sets, on top of ac­qui­si­tions al­ready se­cured.

Neil Sachdev, the chair­per­son of Sir­ius, said yes­ter­day that the com­pany had con­tin­ued to iden­tify ac­qui­si­tions, with €103.3m in new as­sets com­pleted in the year to March and €49.9m no­tarised in the pe­riod or shortly af­ter yearend. The com­pany is listed on the Lon­don Stock Ex­change and has a se­condary list­ing on the JSE’s main board.

Sachdev said Sir­ius owned 44 as­sets with 1.4 mil­lion square me­tres of net let­table area and a book value of €823.3m at the end of March, com­pared with €687.5m in the pre­vi­ous year.

The to­tal port­fo­lio oc­cu­pancy rate im­proved from 80 per­cent to 81 per­cent.

He said they were con­fi­dent the po­ten­tial to con­tinue grow­ing the port­fo­lio sub­stan­tially fur­ther in this or­ganic fash­ion re­mained strong.

Strat­egy

Sachdev added that one of the most pleas­ing achieve­ments of the re­port­ing pe­riod was be­ing able to demon­strate the full cy­cle of the Sir­ius strat­egy, with €101.9m of dis­pos­als ei­ther com­pleted or be­ing agreed, in ad­di­tion to the sale of a par­cel of land for €1.5m.

He said a fur­ther ma­ture as­set was no­tarised for sale post year-end for €7m, while in Jan­uary Sir­ius an­nounced the sale of the Ru­pert Mayer Strasse busi­ness park as­set in Mu­nich for €85m to an in­sti­tu­tional buyer, its most sig­nif­i­cant dis­posal to date.

“The core dis­pos­als demon­strate the ef­fec­tive­ness of the Sir­ius strat­egy, from ac­qui­si­tion, through the in­ten­sive as­set man­age­ment, to profit crys­talli­sa­tion upon dis­posal,” he said.

Sir­ius yes­ter­day re­ported growth of 54 per­cent in ad­justed profit be­fore tax, from €22.9m to €35.3m.

Ba­sic Euro­pean Pub­lic Real Es­tate As­so­ci­a­tion (EPRA) earn­ings a share in­creased 69 per­cent, from 1.88 cents to 3.18c.Like-for-like EPRA net as­set value a share in­creased 8.5 per­cent and con­trib­uted to an in­crease of 9.7 per­cent in EPRA NAV per share, from 52.72c to 57.84c.

The board is rec­om­mend­ing an in­creased fi­nal div­i­dend of 1.53c a share.

Sachdev said Sir­ius re­mained well po­si­tioned to take ad­van­tage of op­er­at­ing in the most pow­er­ful econ­omy in Europe and ben­e­fit from the strong oc­cu­pier and in­vestor de­mand across all sec­tors of the Ger­man real es­tate mar­ket. Sir­ius shares fell 2.47 per­cent on the JSE yes­ter­day to close at R9.46.

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