Sirius Real Estate acquires four business parks in Germany
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SIRIUS Real Estate, the owner of branded business and industrial parks in Germany, is acquiring four business park assets and one land parcel for about €84.8 million (about R1.48 billion).
The group, which has a secondary listing on the JSE, said the acquisitions were located in Oberhausen, Frankfurt, Heiligenhaus and Öhringen, and provided lettable space of more than 150 000m².
A land parcel has been acquired adjacent to an existing asset in Neuruppin. The properties were acquired using the proceeds from Sirius’s first €400m corporate bond issue that was completed in June.
The group said in a statement that together the acquisitions generated day-one net operating income of €3.4m a year.
Sirius chief executive Andrew Coombs said: “With our strong cash position, Sirius continues to deliver on an attractive pipeline of opportunities generated by our in-house acquisitions team. The new assets provide a mix of warehouse, production and office space that we know works well for our platform and our customers.”
He said the assets were in well-established locations that benefited from strong demand from small and medium enterprises and synergies with other Sirius business park sites.
Apart from the opportunity to drive the take-up of lettable space and reduce service charge leakage, there were significant refurbishment and development opportunities in the assets, he said.