CAPE TOWN - Sirius Real Estate, which is listed on the JSE and London Stock Exchange, has completed the 44.5 million (R715.81bn) acquisition of the Alzenau Business Park near Frankfurt am Main, the company said yesterday.
The company operates business parks in Germany. The acquisition, bought from RWE Generation and GfV Gesellschaft für Vermögensverwaltung, would initially be funded using proceeds from recent asset recycling activity and would be injected into an existing facility in the near future.
The business park comprises eleven buildings constructed between 1985 and 2002 providing around 60000 square metres of lettable space.
The asset is 93.5percent let to 16 tenants with an annual total income of 4.1m and annual net operating income of 3.5m as at July 2019. Tenants include Applied Materials, the global leader in materials engineering solutions for the semiconductor, flat panel display and solar photovoltaic industries; Bühler Alzenau, manufacturers of high-vacuum deposition equipment; and Nukem Technologies, operating in the management of radioactive and hazardous waste, decommissioning of nuclear facilities as well as engineering and consulting services.
Sirius chief executive Andrew Coombs said: “Alzenau Business Park is the largest single acquisition since the current management took over at Sirius, reflecting our capacity to acquire larger lot sizes, of which we expect to do more. This asset provides an attractive running yield, which will support our strategy to grow our funds from operations. There is a good mix of long-standing tenants with strong covenant,” he added.