13th Aug 2007 07:01
Dawnay, Day Sirius13 August 2007 Dawnay, Day Sirius Limited has agreed to acquire five German business parks for €102.9 million Dawnay, Day Sirius Limited (the "Company"), the real estate company establishedto acquire large mixed-use commercial real estate in Germany for upgrading toflexible workspaces, is pleased to announce that it has agreed to acquire fivefreehold business parks for a combined total of €102.9 million. The acquisitionsprovide an average net initial yield of 7.66%, off passing rents ranging from€2.36 m2 to €4.92 m2, at an average capital value of €475.4 m2. The Company has now invested €336.1 million, representing approximately half ofinvestible funds, since its admission to AIM in May 2007. In line with the Company's strategy, the five sites being acquired are wellsuited for rebranding under the distinctive Sirius branding and upgrading intomodern flexible workspaces to be leased predominantly to small and medium sizedenterprises (SMEs). With all five sites, the Company intends, where appropriate,to upgrade and sub-divide vacant space into smaller units to meet local tenantdemand from SME's for light industrial and office space. The Company believesthe benefit of modernising and transforming these sites will be reflected in anuplift in rental and capital values. Neuaubing Acquisition of a business park located in Neuaubing for €51 million, locatedwest of the Munich city centre. Munich is the capital and the regional centre ofthe federal state of Bavaria and is one of Germany's largest economic regions.The site consists of offices, production and warehouse facilities and openstorage spaces with a total lettable area of 97,700 m2. There is approximately27,290 m2 of vacant space. The occupancy rate is currently 72% and tenants include GKN Aerospace GmbH. Thenet rental income is approximately €3.58 million with a net initial yield of7.02%. Nabern Acquisition of a business park in Nabern for €32 million, which is located 25kmfrom Stuttgart, a major economic region. The site consists of offices,production and warehouse facilities with a total lettable area of 54,803 m2.There is approximately 13,914 m2 of vacant space. Currently the site is 75% occupied with Daimler Chrysler AG as one of thecornerstone tenants. The net rental income is approximately €2.6 million with anet initial yield of 7.17%. Bayreuth Acquisition of a business park located in Bayreuth for €10.6 million, whichincludes a separate development site of 2,466 m2. Bayreuth is a busy economicregion in Northern Bavaria and within easy access of the A9 motorway to Berlin,Leipzig and Munich. The site consists of offices, production facilities,warehouses and open storage spaces with a total lettable space of 21,825 m2.There is approximately 4,696 m2 of vacant warehouse, office and ancillary space. The occupancy rate is currently 78% and tenants include Grundig Business SystemsGmbH and BAT. The net rental income is approximately €0.72 million with a netinitial yield of 6.82%. Wuppertal Acquisition of a business park located in Wuppertal for €5.1 million, whichconsists of offices, production facilities, warehouses and storage spaces with atotal lettable space of 13,856 m2. Wuppertal is a major industrial centre withstrengths in specific industries such as health care, automotive, chemicals,metallurgy and healthcare. The current occupancy rate is 78.17% and tenants include Lambda GmbH and DeltaIndustrietechnik GmbH. There is approximately 3,025 m2 of vacant space. The netrental income is approximately €0.42 million with a net initial yield of 8.25%. Solingen Acquisition of a business park located in Solingen for €4.2 million, whichconsists of production facilities, offices and residential houses with a totallettable space of 14,441 m2. Solingen is located in the Ruhr which is one of thelargest industrial areas of Germany. The site is located in the triangle betweenDusseldorf, Cologne/Bonn and Wuppertal and provides easy access to the motorway. The current occupancy rate is 98.62% and the site has a single anchor tenant,Bogra Technologies. Net rental income is approximately €0.38m with a net initialyield of 9.02%. Completion of the acquisitions will take place following satisfaction ofstandard administrative conditions. Kevin Oppenheim of the Asset Manager said: "These five acquisitions are strong additions to our portfolio and are in linewith our strategy. Each site provides an excellent opportunity to be re-brandedand modernised into vibrant business parks to attract new SME tenants, as wellas to meet demand for new facilities from existing tenants. We believe theCompany has made significant progress since its IPO in May 2007 having nowinvested €336.1 million and based on the Company's strong pipeline of furtheracquisitions, we are confident of establishing an excellent portfolio within thetimeframe set at the time of the IPO." Further Enquiries Sirius Facilities Group Kevin Oppenheim 020 7861 0550Alistair Markswww.dawnaydaysirius.com JPMorgan Cazenove Robert Fowlds 020 7588 2828Bronson Albery KBC Peel Hunt Capel Irwin 020 7418 8900 Cardew Group Tim Robertson 020 7930 0777 M: 07900 927 650Shan Shan WillenbrockCatherine Maitland Notes to Editors The Company was admitted to AIM ("Admission") in May 2007 with an initial marketcapitalisation of €300 million. Following Admission, in June 2007, the Companyacquired 20 properties in Germany with a combined lettable space totalling c.390,000 m2, independently valued by DTZ at €206 million ("the InitialPortfolio"). The Company announced its intention to acquire the InitialPortfolio at the time of its Admission. In July 2007, a further two sites inGermany were acquired for €26.15 million. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sirius Real Estate