Sirius Real Estate makes bold statement of intent with swoop for German business park assets

0 1


It is paying €84.8mln for four sites plus a tract of land next to an existing property

Sirius Real Estate PLC () has made a bold statement of intent after the completion of its €400mln corporate bond issue with the purchase of four German business park assets and a parcel of land for just under €85mln.

The properties are in Oberhausen, Frankfurt, Heiligenhaus and Öhringen and provide over 150,000 sqm of lettable space comprising a mix of warehouse, production and office space.

“[They are] in well-established locations that benefit from strong SME demand and growth potential, as well as synergies with existing Sirius business park sites,” said chief executive Andrew Coombs.

Together they will generate day-one net operating income of €3.4mln per year, giving an initial yield of 4.1% at 59% occupancy.

With 62,000 square metres of vacant space, there is headroom to grow. Also, the sites will provide the opportunity “accretive refurbishment and selective development”, Sirius said.

CEO Coombs said: “With our strong cash position, Sirius continues to deliver on an attractive pipeline of opportunities generated by our in-house acquisitions team.

He added: “Whilst the assets primarily represent an opportunity for the company to utilise its operating platform to drive the take up of lettable space and reduce service charge leakage, significant refurbishment and development opportunities also exist to provide further potential for value creation.”

The land package acquired is next to its existing site in Neuruppin, around 80km from Berlin.



Source link

Leave A Reply

Your email address will not be published.