AIM-listed Dawnay, Day Sirius (DDS) said it has acquired a portfolio of five business parks from German electronics giant Siemens for EUR 98mln. AIM-listed DDS, established to acquire commercial property in Germany, added it had also bought two business parks in the German towns of Kassel and Pfungstadt for EUR 17.9mln, plus a business park in Dusseldorf for EUR 5.5mln.
AIM-listed Dawnay, Day Sirius (DDS) said it has acquired a portfolio of five business parks from German electronics giant Siemens for EUR 98mln. AIM-listed DDS, established to acquire commercial property in Germany, added it had also bought two business parks in the German towns of Kassel and Pfungstadt for EUR 17.9mln, plus a business park in Dusseldorf for EUR 5.5mln.
The Siemens Gewerbepark Portfolio includes five large industrial and commercial sites in Munich, Nuremberg, Offenbach, Hannover and Berlin. The net initial yield is 8.2% with a current occupancy rate of 89%. DDS said the portfolio offers opportunities for further development, noting that the Berlin site is only 33% occupied. Siemens will continue to occupy 47.8% of the total lettable space for the next five years. The remaining g space is occupied by 30 tenants, with 19,840 m2 vacant for ‘immediate upgrading and transformation to flexible workspace’. DDS said it had already identified over 24,000 m2 of surplus land for new build, while lease expiries will generate further opportunities for upgrading and increasing existing rents.
The acquisition of the two freehold business parks in Kassel and Pfungstadt represents a net initial yield of 7.7% with a current occupancy rate of 94.2%. The Siemens acquisition will be funded through a mix of cash and a new debt facility for which DDS has received approval. The acquisition of the Kassel, Pfungstadt and Dusseldorf sites will be financed in cash initially.
‘These are strong additions to our growing portfolio, which will be immediately earnings-accretive. With significant anchor tenants in place they will generate strong and stable cash flows, providing us with the financial base to exploit their true potential. There exists substantial scope to increase rental values through rebranding and upgrading each site into flexible workspace for the growing SME market as well as providing significant opportunity for development on the 24,000 m2 of surplus land,’ said CEO Kevin Oppenheim.
