Sirius Real Estate disposes of loss-making asset for €3.8m

Business park operator Sirius Real Estate sold off its Bremen Hag business park in Germany for €3.8m, in line with the property’s book value.

The park is the second property in Bremen that the AIM-listed company has sold this year, an area that the company said is outside of its focus on the "big seven" cities in Germany, and was described as having "limited appeal" to tenants.

Andrew Coombs, chief executive of Sirius Real Estate, said: "This is the only remaining non-core site in our portfolio. It has been a challenging site and it is therefore particularly pleasing to have notarised the sale in line with book value."

The asset itself is unfinanced and is loss-making, with a net operating expense of around €0.3m and occupancy of less than 19%.

"The impact on occupancy as a result of selling both Bremen sites due to their high vacancy is likely to be around 4%. This, together with the combined sales proceeds of €19.3 million now available for re-investment, means the two disposals will have a positive impact on the company," said Coombs.

The sale is projected to be completed by October and will increase occupancy due to the reduction of 47,252 sqm of vacant space on the site.

As of 0837 BST, Sirius Real Estate’s shares were up 1.82% at 67.20p.