Sirius Real Estate has acquired two multi-let business parks on the outskirts of Berlin from Union Investment for a total €48.9 mln, including acquisition costs.
Sirius Real Estate has acquired two multi-let business parks on the outskirts of Berlin from Union Investment for a total €48.9 mln, including acquisition costs.
The two parks are located in the Berlin districts of Mahlsdorf and Potsdam and have a total lettable area of 67,774 m2. The acquisitions mean Sirius now has five business parks in the Berlin area, a core market for the company where demand for flexible workspace is high.
Based on the current occupancy rate of 86%, the two sites generate €4.1 mln of annualised rental income and €3.8 mln of net operating income at an EPRA Net Initial Yield of 7.7% and an initial cash on cash return of 13.3%.
The acquisitions were funded by a drawdown of €26.1 mln from Sirius’ new €36 mln, five-year debt facility from one of the company's existing bankers.
Andrew Coombs, chief executive of Sirius, commented: ‘We are pleased to have completed the acquisition of the two properties which are in key locations on the outskirts of Berlin; a region in which we have a strong track record of creating value-added tenancy space, and where we plan to continue to increase our presence.’
