Sirius Real Estate has invested €40m in acquiring two German business parks and is in talks to buy additional assets in the UK and Germany.
The owner and operator of branded business and industrial parks in Germany and the UK said it has acquired an asset in Cologne and another in Göppingen, in deals that add close to 55,000sqm of primarily light industrial and production space to the group’s 1.9m sqm German portfolio.
The business park in Cologne was acquired for €20m and the Göppingen asset was acquired for €19.8m.
Andrew Coombs, CEO of Sirius Real Estate, said: “These acquisitions provide the company with strong day-one cashflow 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.
“Acquired at attractive yields, these sites offer under-rented space and an opportunity to reduce vacancy and improve cashflow, providing a range of avenues for Sirius to leverage its UK and German operating platforms to generate significant value creation and to grow net operating income over the medium term.”
Coombs said the company is making “good progress” on its acquisition pipeline, noting the benefit of its cash position following a £147m equity raise in November.
He said the company currently has €78m of proceeds committed to legally binding acquisitions, €38m of which has already been completed.
Sirius Real Estate is in an advanced stage of discussions with over €70m of additional opportunities across Germany and the UK and “we expect to deploy the remaining fundraise proceeds in the coming months”, he added.
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