Sirius Real Estate and AXA Investment Managers - Real Assets (AXA IM - Real Assets) have set up a German business park joint venture known as Titanium.
As part of the newly formed venture, AXA IM - Real Assets, on behalf of its clients, will buy from Sirius a 65% stake in five German business park assets.
The 191,000sqm business parks, which provide a combination of office, warehouse, industrial and storage space, are worth €168m.
Total cash commitment from AXA IM - Real Assets amounts to €43.9m. The deal is expected to generate total cash proceeds of more than €70m for Sirius after refinancing and expected related costs.
Sirius said as a result of the joint venture, it will have significant resources to invest both for itself and for Titanium.
Sirius will own the remaining 35% stake in the joint venture and will continue the operation of the assets.
Andrew Coombs, CEO of Sirius Real Estate, said: “The formation of this relationship represents an important opportunity for both parties and it will give Sirius key advantages in an increasingly competitive market and through the real estate cycle.
“This will increase the company’s ability to create value for both its investors and the JV from which the company will benefit as both the manager and as an equity partner”.
John O’Driscoll, European head of transactions at AXA IM - Real Assets, said: “This transaction allows us to invest in an attractive portfolio of assets and provides us with immediate scale in this important asset class in Germany, a geography that we are actively growing in.”