Branded business parks specialist Sirius Real Estate has acquired an office and two business parks in Frankfurt, Erfurt and Essen, respectively, in separate transactions for a total consideration of approximately €45 mln.
The acquisitions have been made using the proceeds of the company’s €400 mln oversubscribed corporate bond issuance in June 2021 and will add a further 44,000 m2 of primarily office and industrial space to the company’s 1.5 million m2 portfolio.
Sirius CEO Andrew Coombs said: 'Following our oversubscribed €400 mln bond issuance in June, the business has retained its strong cash position, and remains well placed to continue to deliver on an attractive pipeline of acquisition opportunities.
lThese three assets provide a strong mix of industrial, production, storage and out of town office space - with occupier demand for these types of assets remaining robust - while providing further potential to create value and grow income through asset management, improving sustainability and the letting of vacant space.
lThese assets add to our existing operations in Essen and Frankfurt, whilst also growing our business into Erfurt, a key logistics location, as we continue to target strategic locations in Germany in order to generate sustainable returns on behalf of investors.'
The acquisition in Frankfurt is the company’s third in the city and comprises a multi-tenanted office with a total lettable area of approximately 10,000 m2. The property has been purchased for total acquisition costs of €21.2 mln and generates an annualised net operating income of €598,000.
With occupancy at 54% and an average rent of €11.02 per m2, plus a weighted average unexpired lease term of 2.9 years, the property offers the opportunity for Sirius to use its platform to improve occupancy and income.
Following on from the completion of the company’s first investment in Essen in May this year, Sirius has added further scale, completing the purchase of an office and production space property for total acquisition costs of €12.2 mln. The property comprises 11,709 m2 of lettable space and generates an annualised net operating income of €851,000, from an occupancy of 81%.
The final transaction comprises the completion of the acquisition of a 22,000 m2 multi-tenanted business park with development land in Erfurt and represents the company’s first investment in this location. With total acquisition costs of €11.7 mln, the park comprises 14,000 m2 of industrial space, 7,400 m2 of office space and 760 m2 of other space.
The site generates €623,000 of annualised net operating income at 81% occupancy, presenting an opportunity to grow income through the letting of vacant space and potential investment into an 18,000 m2 development land parcel.
