6th Oct 2021 09:13
(Alliance News) - Sirius Real Estate Ltd on Wednesday reported an annualised rent roll increase of 12% since last year as it continued pumping money into German business parks.
In a trading update, the Germany-focused branded business and industrial parks developer said its annualised rent roll in the six months to September 30 was EUR99.7 million, up 12% from EUR89.2 million in the same period last year and up 3.3% from EUR96.5 million in the previous six months.
Increased rent roll was driven by a 2.6% increase in like-for-like average rental rate, which Sirius said highlights strong occupier demand and "reversionary potential within the portfolio".
Sirius committed EUR153.4 million to eight on-balance-sheet business park acquisitions in the period, with two assets completing and six notarised for completion post period end. It purchased a land parcel opposite one of its existing business parks for EUR500,000.
The FTSE 250 constituent also completed its EUR79.9 million acquisition of a business park in Augsburg announced back in January.
"As with many countries, corporates in Germany are now focused primarily on the re-organisation of their supply chains to within European borders and adapting to more flexible ways of working," said Chief Executive Andrew Coombs.
"Both of these challenges play to the strengths of Sirius's portfolio and will help drive demand to our out of town business parks which offer a range of storage, warehouse, manufacturing spaces and out of town offices."
Sirius said trading has so far been in line with management expectations for the full year.
Shares were down 1.8% at 127.06 pence in London on Wednesday morning. They were down 2.0% in Johannesburg at ZAR26.13.
By Josie O'Brien; [email protected]
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