Sirius Real Estate, the UK and Germany branded business and industrial park operator with listings on the JSE and London Stock Exchange, is acquiring two more properties in Germany for €40 million (R928.1m).
The acquisition of two business parks had been notarised, one in Köln and the other in Göppingen. The acquisitions were made using proceeds of November's £147m capital raise, Sirius said in a statement Monday.
The acquisitions followed the three acquisitions in North London, UK at the end of last year for £33.5m.
The two business parks in Germany added just under 55 000 square metres of primarily light industrial and production space to the group's 1.9 million square metre German portfolio.
The Köln business park comprises 19 114 square metres of light industrial space. It was notarised at a price of €20m and currently generated rental income of €1.67m and annualised net operating income of €1.56m. Occupancy was just over 89%.
In Göppingen in southern Germany, Sirius was acquiring a multi-tenanted business park with a lettable area of 35 160 square metres of mainly light industrial and production space. It was notarised at €19.8m and generated total rental income of €1.78m and an annualised net operating income of €1.47m.
Both business parks were situated in “highly desirable micro-locations within well-established light industrial zones,” and benefited from good transport networks and connectivity, Sirius’ CEO, Andrew Coombs, said in a statement.
"These acquisitions provide the company with strong day one cash flow from a stable, diversified tenant base and align well with our strategy of curating a range of flexible out-of-town light industrial products that we expect to appeal to the local market,“ he said.
He said Sirius was in advanced discussions with over €70m of additional opportunities across Germany and the UK.