Sirius disposes of mature German asset and buys three UK properties

Sirius Real Estate is a JSE-listed operator of business parks in Germany.

Sirius Real Estate is a JSE-listed operator of business parks in Germany.

Published Nov 8, 2023


Sirius Real Estate, listed owner of branded business and light industrial parks in Germany and the UK, said yesterday it disposed of Maintal industrial park at a premium to book value and had made acquisitions in North London in terms of its asset recycle programme.

The industrial park in Maintal, in Germany’s south-west Hesse region, had been notarised and was sold for €40.1 million, representing a net initial yield (NIY) of 5.7%. The disposal was at about 6% above the last reported book value.

“The Maintal industrial park offered Sirius little potential for further value creation, however its strategic location made it attractive to the purchaser, a trend we have witnessed in past disposals of mature assets,” the group said in a statement.

The BizSpace subsidiary acquired for £33.5m, three assets in North London, from a closed ended fund.

“The assets are based in busy suburban areas, with two in the Borough of Islington and one in the Borough of Camden. The assets have a combined area of 103 962 square feet of primarily multi-let studio workspaces and occupancy rate of just under 70%, which the group views as providing significant potential for growth.”

Sirius CEO Andrew Coombs said: “The Maintal disposal at a premium to book value has allowed us to capitalise on demand for this high-quality property. The completion of our acquisition of the properties in London at a 7.3% NIY with only a 70% occupancy, represents a good example of our strategy of recycling capital from mature assets into those where we believe we can grow income and value through our operating platform.”