Sirius Real Estate plans acquisitions
It seeks to take advantage of low financing costs and strong demand from tenants.
Germany-focused business park owner Sirius Real Estate is planning further acquisitions during the second half of its year, seeking to take advantage of low financing costs and strong demand from tenants. Sirius Real Estate is listed on the Johannesburg Stock Exchange.
Investor interest in industrial and office parks in Germany is driving yields and valuations down, the company said on Monday, but added this was partially due to lower finance costs, which it said it is well-positioned to take advantage of.
The company owns or manages 60 business parks around Germany and its portfolio had a book value of €1.06 billion (R17 billion) at the end of its six months to end-September. This is an about 6 percent decline in the book value the prior half-year.
During the period under review, it completed acquisition of three sites for €21.9 million, with two more assets notarised for €64.6 million, and a further three in exclusivity for €57.8 million. The company has further funds of about €80 million for further acquisitions or other ventures.
“As such, the company is well positioned for a busy and progressive second half of the financial year and is trading in line with the board’s expectations,” Sirius said.
“Despite political uncertainty and economic headwinds, Sirius’s value-add business model continues to flourish due to the diversity that comes from intensive asset management and our wide range of products,” said CEO Andrew Coombs (pictured).