Dawnay Day Sirius, the real estate company established by Dawnay Day and Sirius Facilities to acquire large mixed-use commercial real estate in Germany for upgrading to flexible workspaces, announced this week that it has agreed to acquire two freehold business parks for a combined total of EUR 26.15 mln.
Dawnay Day Sirius, the real estate company established by Dawnay Day and Sirius Facilities to acquire large mixed-use commercial real estate in Germany for upgrading to flexible workspaces, announced this week that it has agreed to acquire two freehold business parks for a combined total of EUR 26.15 mln.
In line with its strategy, the company intends to lease the two sites being acquired, in Mannheim and Cologne, to the growing small and medium sized enterprises (SME) sector in Germany. The Mannheim business park consists of offices, production facilities and warehouses over an area of 68,320 m2. The net rental income provided by current tenants is approximately EUR 1.75 mln with a net initial yield of 12.95%. The 29,000 m2 of vacant warehouse and office space will provide the opportunity to sub-divide the site to attract new SME tenants. The Cologne acquisition is a mixed-use commercial site of over 30,742 m2 consisting of production facilities, offices, a hotel and a residential building. The site is already occupied by a large number of SMEs providing net rental income of about EUR 0.91 mln with a net initial yield of 7.13%.
Kevin Oppenheim of Dawnay Day Sirius Real Estate Asset Management commented:'These acquisitions are significant and provide us with an ideal opportunity to modernise and rebrand into vibrant business parks to attract new SME tenants.'
