Sirius Real Estate, the owner and operator of branded business and industrial parks in Germany and the UL, has completed the disposals of two assets for a combined total of €12.2 mln, representing an average net initial yield of 4.1%.
The most recent disposal, which completed on 1 April, was achieved at a 5.3% premium to the September book value of €8.3 mln, and comprised a 15,000 m2 mixed-use mature business park in Wuppertal, in North Rhine Westphalia, Germany.
Originally acquired by Sirius in 2007 and sold for €8.8 mln, the property offered office, warehouse and production as well as workshop space and was approximately 80% let.
This disposal follows the €3.4 mln sale at book value, as at 30 September 2022, of a 7,620 m2 vacant office building in Ipswich, UK, which completed in December 2022.
The company has disposed of six assets in the last 12 months, including the sale of two non-income producing land parcels in Germany, for a total sales price of €45.7 mln compared with a book value of €36.7 mln, representing a 25% aggregate premium to the last book value prior to each sale.
Each disposal was achieved at or above book value, with the proceeds being invested in the acquisition of three new sites in Germany for a total consideration of €44.6 mln, of which €43.7 mln was transacted in the second half of 2022.
The three new sites are now generating higher revenues than the income contributed by the assets disposed of earlier in the year.
Andrew Coombs, Sirius Real Estate CEO, said: 'The strategic disposal of these assets at or above book value during a challenging market underpins the strength of our portfolio.
'This is based on both the historically higher yields at which our portfolio is valued, relative to many other parts of the sector, which we believe provide it with a higher degree of insulation when real estate values come under pressure, as well as our ability to offset this further by driving inflationary income growth through our asset management platform.
'It also demonstrates our ability to crystallise returns from mature assets, which can then be recycled into investing into new opportunities within our portfolio where we see an opportunity to create value.'
