SIRIUS REAL ESTATE LIMITED - Sirius Completes Acquisition Of Business Park Near Hamburg

Sirius Completes Acquisition Of Business Park Near Hamburg

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LSE(EUR) Share Code: ESRE
ISIN Code: ISIN GG00B1W3VF54

13 May 2019

                                       Sirius Real Estate Limited

                           ("Sirius Real Estate", “Sirius” or the "Company")


                     Sirius completes acquisition of business park near Hamburg

Sirius Real Estate, the leading operator of branded business parks providing conventional space and
flexible workspace in Germany, has completed the acquisition of Buxtehude Business Park south west
of Hamburg, in Lower Saxony, for a total consideration of €8.7 million including acquisition costs. The
vendor is a well known, international spirits company. The acquisition, notarised in March 2019, has
been funded from existing cash resources.

The business park, which provides 28,532 sqm of lettable space (90% warehouse/ production space;
6% offices; and, 4% of other space) on a plot of 35,425 sqm, is being acquired with full vacant
possession. Sirius will make use of its operating platform to re-let the site using a multi-tenant strategy
with an anchor tenant surrounded by several smaller tenants with multiple different lease lengths.

Buxtehude, located 30 km southwest of Hamburg city centre, is part of the Hamburg Metropolitan
Region. It is attached to the city's S-Bahn rapid transit network and has easy access to the Autobahn
network. Major companies operating in the town include Airbus, Unilever and Pioneer.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “Buxtehude is our third
acquisition in the Hamburg area and is part of our inititive to sell our three non-core properties in
Bremen, which we completed last month and move the resources and capital from Bremen into the
Hamburg market where we believe opportunities and returns will be much greater. Buxtehude with
the potential to accommodate a flexible multi-tenant structure, in an area where take up is robust and
rents are growing is an exciting value-add opportunity for Sirius.”

“The acquisition plays to the strengths of our integrated business model and track record of generating
tenant demand, maximising space usage and achieving management efficiencies.”

“We are already generating interest in this park from prospective tenants and we believe Buxtehude
will complement the Company’s two existing Hamburg sites.”

For further information:

Sirius Real Estate

Andrew Coombs, CEO/Alistair Marks, CFO
Tel: +49 (0)30 285010110

Tavistock (Financial PR)

Jeremy Carey/James Verstringhe

Tel: +44 (0)20 7920 3150

Email: siriusrealestate@tavistock.co.uk

NOTES TO EDITORS

About Sirius Real Estate

Sirius is a property company listed on the main market and premium segment of the London Stock
Exchange and the main board of the Johannesburg Stock Exchange. It is a leading operator of branded
business parks providing conventional space and flexible workspace in Germany. The Company's core
strategy is the acquisition of business parks at attractive yields, the integration of these business parks
into its network of sites under the Company's own name as well as offering a range of branded
products within those sites, and the reconfiguration and upgrade of existing and vacant space to
appeal to the local market, through intensive asset management and investment. The Company's
strategy aims to deliver attractive returns for shareholders by increasing rental income and improving
cost recoveries and capital values, as well as by enhancing those returns through financing its assets
on favourable terms. Once sites are mature and net income and values have been optimised, the
Company may take the opportunity to refinance the sites to release capital for investment in new sites
or consider the disposal of sites in order to recycle equity into assets which present greater
opportunity for the asset management skills of the Company's team.

On 1 March 2019, Sirius announced that, in a transaction anticipated to complete in June 2019, it had
formed a real estate investment joint venture with clients represented by AXA Investment Managers
- Real Assets in which AXA acting on behalf of its clients, will own a 65% interest and Sirius will own
the balance of 35%. The JV is called Titanium. The JV will initially be formed by AXA acquiring, on behalf
of its clients, from Sirius a 65% stake in five SPVs through which it currently owns two business parks
located in Berlin (Berlin Borsig and Berlin Tempelhof) and one in each of Mainz, Nurnberg and
Bayreuth. The business parks provide a combination of office, warehouse, industrial and storage
space. The implied property value of €168 million equates to a gross yield for the portfolio of 6.2%
and reflects a premium to the last reported book value as at 30 September 2018 which was €141.1
million. Total cash commitment from AXA IM - Real Assets amounts to €43.9 million. The transaction
is expected to generate total cash proceeds of more than €70 million for Sirius after refinancing and
expected related costs.

For more information, please visit: www.sirius-real-estate.com

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/

Follow us on Twitter at @SiriusRE
LEI: 213800NURUF5W8QSK566

JSE Sponsor: PSG Capital

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