Property firm Sirius Real Estate is adding a 37,000sqm business park to its German portfolio.
Sirius said it has agreed to acquire the business park in Reinsberg in Saxony for €20.4m, representing a 6% EPRA net initial yield after purchase costs.
The asset is 75% occupied, with a 25% vacancy rate, Sirius said, adding that the vacancy rate offers the potential to increase value by leasing the available space, while the existing occupancy provides substantial immediate income.
Andrew Coombs, CEO of Sirius Real Estate, said: “Our first acquisition of the year at Reinsberg follows our significantly oversubscribed €350m bond issuance in January and demonstrates both the strength of our pipeline and our ability to transact quickly.
“The acquisition takes advantage of a situation where we can add income and also have an opportunity for significant value creation. The purchase shows how we are able to leverage our platform to work with asset owners on partial sale-and-leaseback transactions that help them better manage their balance sheets while providing us with opportunities to enhance our portfolio.”
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