Real estate agent and management company Sirius Real Estate has acquired three assets in Germany for a total of €44.6m.
Sirius said on Tuesday that the disposals were predominately funded from the disposal of three assets in Germany and the UK that offered “limited further growth opportunities”.
The FTSE 250-listed group collected a combined total of €33.6m for the sale of its assets in Magdeburg and Heiligenhaus in Germany, as well as its BizSpace business park in Camberwell, London.
Sirius then took that cash to snap up a €39.8m mixed-use property in Düsseldorf, a €3.9m warehouse asset located in a well-developed commercial area in Dreieich, and a €900,000 small 239 square metre vacant office building in Potsdam.
Chief executive Andrew Coombs said: “The strategic disposal of these mature assets at a premium to their book value demonstrates our continued ability to drive value within our portfolio and then crystallise returns, which can be recycled into new opportunities where we can grow operating income through our asset management platform.
“Given the current uncertainty in the market, we now expect to slow our acquisition pipeline, however, we are continuing to monitor numerous acquisition opportunities so that we remain poised to execute transactions at the appropriate time in the future. We will also continue to seek to dispose of non-core or mature assets as and when we feel the timing is right.”
As of 1320 BST, Sirius shares were up 1.89% at 70.10p.
Reporting by Iain Gilbert at Sharecast.com
