Sirius Real Estate acquires more industrial property in Germany for R267. 4 million
Image: Supplied
Sirius Real Estate's share price increased 3.18% on the JSE Thursday after the owner of branded business parks said it had acquired a light industrial property in Geilenkirchen, Germany for €12.9 million (R267.4m).
The acquisition was in line with Sirius' 'strong acquisition pipeline,' the group management said in a statement. The share price increased to R23.37 on the JSE in the afternoon, continuing a rise in the price over three months, when it was trading at R20.19.
The acquisition comes a day after Sirius announced it had secured a new €150m unsecured revolving credit facility, with an initial three-year term, and with the option to upsize by up to an additional €100m.
The additional funding would allow the company to continue to take advantage of current market conditions and its strong acquisition pipeline, as well as managing cash balances efficiently as it passes through bond refinancing windows.
The Geilenkirchen asset was acquired by way of a sale-and-leaseback transaction, with a precision engineering business that specialises in processing sheet metal using laser technology, which had entered into a triple net lease on the entire property.
The acquisition reflected a net initial yield of 9.3% on a property that is less than 25 years old, Sirius' management said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
The property is west of Düsseldorf, 33km from Sirius' existing site in Aachen. In close proximity to the Belgian and Dutch borders, the area is one of Europe's most dynamic economic regions, benefitting from a strong industrial base.
Meanwhile, as part of the ongoing UK portfolio optimisation, Sirius also exchanged contracts for the disposal of a small non-core asset in Huddersfield to an individual, for £1.55m. The transaction was concluded at a 7% premium to the asset's most recent book value and reflected a disposal yield of 8.1%.
CEO Andrew Coombs said the acquisition provided them with a well-located asset at an attractive yield, and further strengthened their footprint in the Euregio Maas-Rhine industrial region.
He said with that Geilenkirchen also home to a NATO airbase, the acquisition may benefit from defence investment, particularly after news this week Germany's defence spending would head towards a new target of 5% of GDP.
The acquisition follows the Reinsberg and Monchengladbach acquisitions announced earlier this year. "We have the flexibility and resources to continue to make accretive acquisitions at this opportune point in the market cycle," said Coombs.
Visit:www.businessreport.co.za
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
10 hours ago
- The Citizen
Afristrat liquidation ‘an attempt to misattribute responsibility' – ex MyBucks SA boss
David van Niekerk alleges Afristrat CEO George Manyere was 'the architect of the downfall of both Afristrat and MyBucks'. Former MyBucks SA CEO David van Niekerk claims the provisional liquidation of Ecsponent, the previously JSE-listed company now renamed Afristrat, appears to be an attempt to rewrite history and misattribute responsibility for the group's dire financial situation. Van Niekerk said the underlying issue remains the actions of Afristrat CEO George Manyere, 'not only as a participant, but as the architect of the downfall of both Afristrat and MyBucks'. He rejected a suggestion in a founding affidavit in support of Afristrat's liquidation that it was a 'bona fide error in judgment' by Manyere to convert R420 million in MyBucks debt into equity in November 2019. Van Niekerk said this narrative by Manyere is 'disingenious,' alleging the decision and strategy were orchestrated by Manyere to: Consolidate control over MyBucks and Afristrat. Strip assets from both companies into MHMK Group entities. Divert value away from existing shareholders. Approached by Moneyweb for comment on Van Niekerk's allegations, Manyere said they do not currently intend to engage with 'the unfounded and defamatory allegations made by Mr Van Niekerk, which are both factually incorrect and misleading'. He added that the circumstances surrounding the collapse of Afristrat have been comprehensively outlined in his founding affidavit for the liquidation of the company. 'We, however, reserve the right to address any allegations made by Mr Van Niekerk in the necessary forum,' he said. The board of Afristrat approved a special resolution to apply for Afristrat's liquidation because the company is technically insolvent and unable to pay its debts as and when they become due. The notice of motion was served to Afristrat Investment Holdings Limited on 15 July 2025. Investors invested R2.3 billion in preference shares in the company. ALSO READ: Afristrat has 'lost' R1.5bn investment in MyBucks Manyere claimed in the founding affidavit that Afristrat 'unfortunately fell victim to an orchestrated series of fraudulent transactions,' which caused the company irreparable harm. He referred to an investment in MyBucks SA (Luxembourg) and its subsidiaries, co-founded and managed by Van Niekerk up until March 2019. Van Niekerk's initial response to Manyere's allegations was that he too was a victim – not a beneficiary – of Manyere's actions. He subsequently provided a detailed response to Moneyweb about the mechanisms that led to the collapse of value in both MyBucks SA and Afristrat. Van Niekerk said Afristrat invested in numerous entities, only one of which was MyBucks, and that he served as CEO of the Frankfurt Stock Exchange-listed MyBucks SA until March 2019. He said Afristrat provided funding to MyBucks SA to support its lending businesses in Africa and South Africa. However, Van Niekerk claimed that from 2018 through to early 2019, Manyere – who was then both a board member of MyBucks and vice chairman and de facto controlling shareholder of Afristrat via MHMK Group – began asserting that MyBucks and its subsidiaries were unable to service this debt. 'This, in truth, was part of a dispute over the cost of funding charged by Ecsponent,' he said. ALSO READ: Ecsponent investor continues fight over R2.3bn in lost investor funds Debt to equity conversion Van Niekerk said that, as a supposed solution, Manyere proposed converting debt to equity in MyBucks. 'Since a few of the Manyere's shareholders had debt in the business, he convinced all debt holders that a cheap conversion was the way to go,' he claimed. Van Niekerk said Manyere then secured the appointment of his former business partner and confidant, Tim Nuy, as CEO of MyBucks SA to consolidate his operational control of the group. 'At this point, it became clear that it was Manyere's intention to wrest control of MyBucks SA via Afristrat, with the full support of the board. 'After many months of fighting this, I resigned as CEO on 27 March 2019 in opposition to this course of action, which – as it turned out – would prove catastrophic for both Afristrat and MyBucks SA,' he said. ALSO READ: Ecsponent Financial Services accused of selling high-risk preference shares to pensioners JSE investigation and outcome Van Niekerk said letters were sent to the JSE Market Regulation Department in May and June 2021 concerning MHMK Fin, formerly the MHMK Group, entering into several transactions with Afristrat involving asset transfers and share issuances, including the acquisition of assets formerly owned or controlled by MyBucks SA. He explained that these letters outlined how these orchestrated transactions – including the MyBucks debt conversion – appeared to have been designed to secure operational control of Afristrat and MyBucks SA by MHMK Group, and formally requested the JSE to investigate these transactions. 'Regrettably, no action was taken,' he said. JSE director issuer regulation, Andre Visser, confirmed to Moneyweb that the JSE received a complaint in 2021 and investigated the various allegations of non-compliance with the JSE listings requirements relating to transactions concluded between Ecsponent Limited and its group companies. 'Based on the information submitted, together with information obtained and available to the JSE, no contravention of the JSE listings requirements was identified,' he said. Van Niekerk claimed that prior to his departure, MyBucks had a strong geographical spread, operating in Australia, Europe and Africa, with a highly capable artificial intelligence (AI) development team and best-in-class fintech infrastructure. 'It was not in financial distress at the time. We had won several awards for AI and even went on to sell the Australia operation at a $5 million profit,' he said. ALSO READ: Ecsponent's preference shareholders fear losing everything Financial decline and asset sales Van Niekerk said Afristrat shareholders approved the conversion of MyBucks' R420 million debt in November 2019 at a subscription price of €1 per share, but at the time the initial discussions began, MyBucks shares were trading at €8 per share. Van Niekerk said that by the time the circulars went out, it was at €6 per share and the shares had dropped to €0.70 per share when shareholder approvals were secured, as a result of the market pricing in the forced conversion. 'This transaction, coupled with subsequent operational decisions, decimated value in both companies. 'MyBucks, as it turns out, was previously servicing Afristrat's entire preference share base. 'Following the conversion and strategic shift, cash flow dried up, and assets were ultimately sold at below-market value to companies linked to Manyere. 'Manyere's actions directly led to the collapse of both entities, and over R2 billion in investor funds were effectively wiped out, converted to worthless Afristrat shares. 'MyBucks SA was eventually placed into liquidation by the Luxembourg tax authority. 'Debt owed by Afristrat to Ecsponent Eswatini became irrecoverable. MyBucks assets were sold to MHMK and its associates, and all the MyBucks technology and subsidiaries now fall under MHMK,' he said. Van Niekerk added that an independent forensic investigation commissioned by the Central Bank of Eswatini into Ecsponent Eswatini was conducted by Cliffe Dekker Hofmeyr Inc, whose report attributes the E340 million loss 'to failures under Manyere's stewardship – not mine'. This article was republished from Moneyweb. Read the original here.
The Star
11 hours ago
- The Star
All Share index remains bullish despite Trump's tariffs
Chris Harmse | Published 2 days ago The All Share index on the JSE recorded once again a record-breaking week. The index reached 101 034 points in intra-trade on Friday, gaining 0.2% on the day. The index improved over the week by 3.2%, advancing by 19.7% for the year to date. Equities are boosted by precious metals as the gold, platinum and palladium prices surged. This despite the introduction of tariffs of 30% by the US Trump administration on a wide range of products imported from South Africa, which kicked in last Thursday. The current debate like the 'inability' of the South African government trade negotiators is dominating the media. Despite this noise, South African financial markets are experiencing positive movements. Although with volatility, the Rand exchange rate ended last week flat at R17.70 to the dollar. The Rand improved by 5.6%, or 100 cents, from R18.70 since January 2, 2025. Since the beginning of the year the price for Gold in terms of dollars has increased by 30%, the Platinum price by 50% and the Palladium price by 29.8%. The Brent oil price ended the week flat on $66 per barrel. Global stock markets appear emotionless to Trump's 'reciprocal' tariffs a fter a week of serious negotiations between the Trump administration and most of the other big economies around the world, like the EU, Great, Britain, China, and Japan. The average effect tariff rate on US imports is now the highest since the 1930s. US stocks closed mixed to lower on Thursday when the tariffs were introduced, with the Dow Jones losing 0.51% and the S&P 500 fell 0.08%. These indices recovered sharply on Friday. The Dow ended the week 1.4% higher, the S&P50 gained 2.43% and the Nasdaq increased by 1.3%. Of the 87% of companies in the S&P 500 that already had reported earnings for the second quarter, 2025, most of them or 81% of those companies reported earnings higher than Wall Street's expectations. Prospects for this coming week Domestically the release Wednesday by Statistics South Africa of South Africa's unemployment rate for quarter two 2025 will be of importance for financial markets. The number of jobless people was 32.9% in quarter one and it is expected that the number, as always seasonally, will decrease to 32.6% in quarter two. South Africa's mining production data for June will also be announced on Wednesday. Globally, investors will await the release of the US inflation rate for July this coming Wednesday. It is expected that the annual CPI had increased by 2.8%. This is higher than the annual inflation rate of 2.7% recorded for June 2025. This will affect market sentiment negatively as investors will be uncertain about the next move by the Federal Reserve that will be held only on September 17. The current conflict between President Donald Trump and the Federal Reserve chairperson Jeremy Powell will continue and put markets in uncertainty. The US will also publish its annual production price inflation rate for June on Thursday and its retail sales for July on Friday. It is expected that the monthly growth in retail sales decreased to 0.4% from 0.6% in June. This figure in months to come will be more of importance as the effect of the increased US tariffs will be felt the most by consumers from August. Elsewhere, the UK will announce its unemployment rate for June on Tuesday and its preliminary GDP economic growth rate for quarter two 2025 on Thursday. Chris Harmse is the consulting economist of Sequoia Capital Management and a senior lecturer at Stadio Higher Education. *** The views expressed here do not necessarily represent those of Independent Media or IOL . BUSINESS REPORT
The Citizen
11 hours ago
- The Citizen
Gold and platinum shares steal the show as JSE cracks new high
Year-to-date returns range from 90% to 161% for leading gold and platinum counters. Gold and platinum shares have stolen the show on the JSE this year, with returns as high as 161% in the case of Sibanye Stillwater, helping power the JSE to new highs on Tuesday as the All Share index cracked 101 200. 'Much like the US's Magnificent Seven leading Wall Street's rally, South Africa boasts its own 'Incredible 10', says Kea Nonyana, market analyst at Scope Prime. 'These ten stocks have been responsible for a remarkable 94% of the SWIX's year-to-date gain of 20.8%, with the top three alone driving 52% of the advance. The top two are Gold Fields and AngloGold Ashanti, with platinum group miners (PGM) also leading the charge.' One of the big investment stories of the year has been the surge in precious metals, bringing respectability to the overall JSE performance. Besides Sibanye Stillwater's surge, AngloGold Ashanti is up 151% so far this year, Gold Fields and Northam Platinum both up 128%, Impala Platinum 95% and Harmony Gold 90%. 'I don't see gold back down again,' says TF Metals report founder Craig Hemke. 'Gold has proven that its rally is sustainable and for sustainable reasons.' Gold is up 28% this year, trading this week at $3 340 an ounce. Platinum is up nearly 50%, breaking above its previous 2022 high, with palladium clocking a 25% gain so far in 2025. Gold's surge since 2024 has been sparked by tensions in Ukraine and the Middle East, a weaker US dollar, central bank buying, and stubborn inflation in the US. ALSO READ: JSE All Share Index hit 100k points Mining stocks shine Comparing the JSE's average annual return over the last decade of roughly 11% with the S&P 500's around 15% a year, suggests one would be far better off investing abroad. That said, there have been some spectacular performers on the JSE so far this year – most of them in the mining sector. AngloGold Ashanti reported a more than three-fold increase in profits for the half year to June 2025, while Gold Fields' recent trading statement says it expects a 203% to 236% increase in headline earnings for the six months to June 2025. The JSE's 24% year-to-date growth is driven largely by mining counters, with platinum and gold standing out, says Shiven Moodley, CEO of Novaque Research. 'Platinum is up roughly 46% so far this year and gold 28%. The underlying drivers remain a blend of macro, geopolitical, and structural supply-demand dynamics. 'Geopolitical tensions continue to push safe haven flows. Central bank stockpiling is supporting gold with continued accumulation in reserves. Some could be attributed to demand shift away from gold to platinum for jewellery, while vehicle demand in this interest rate cycle supports the demand for catalytic converters for manufacturing. There is a potential headwind for South African production impacting supply,' adds Moodley. ALSO READ: Why the sudden shine in gold again? 'For now, the precious metal market looks supportive of further upside, despite risk of de-escalation in geopolitical events. Platinum futures remain positioned as net long, supporting a bullish bias, however, we saw profit taking in early August. Gold remains net long, with contracts increasing over the first week of August, sighting a fresh conviction for bullish bias,' adds Moodley. JP Morgan sees gold breaking $4 000 an ounce by the third quarter of 2026, should geopolitical risks remain elevated, while the metal has historically tended to perform well in times of a weak US dollar and lower US interest rates. 'We still think risks are skewed toward an earlier overshoot of our forecasts if demand continues to surprise our expectations,' said Gregory Shearer, head of base and precious metals strategy at JP Morgan. 'For investors, we think gold remains one of the most optimal hedges for the unique combination of stagflation, recession, debasement, and US policy risks facing markets in 2025 and 2026.' This article was republished from Moneyweb. Read the original here.
