Sirius Real Estate has expanded its defence-supported portfolio with the acquisition of a business park in Germany.
The owner and operator of branded business and industrial parks in Germany and the UK said it has agreed to acquire the fully let light-industrial business park in Fulda, north-east of Frankfurt in the Hesse region, for total acquisition costs of €49.8m.
The site comprises 57,771sqm of lettable space on a 112,867sqm plot.
The asset is anchored by a European manufacturer of ballistic protection equipment for military and law enforcement customers, which has been based at the site since 2014.
Andrew Coombs, CEO of Sirius Real Estate, said: “This acquisition represents another attractive opportunity to deploy capital into a high-yielding industrial asset with strong existing income and clear potential for further growth.
“The property is anchored by a high-quality manufacturing tenant operating in the defence sector, which aligns with our strategy of increasing exposure to areas supported by long-term structural demand and brings our portfolio of recently acquired defence assets to just over €200m at a blended gross yield of circa 8.9%.”
Coombs said the firm has already identified opportunities to grow income through the expansion of the anchor tenant, “while benefiting from the strength of the existing rent roll from day one”.
“The acquisition is therefore highly complementary to our platform and supports our continued focus on generating sustainable income growth alongside selective asset management opportunities.”
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