Business and industrial park specialist Sirius Real Estate has acquired four business park assets and one land parcel in Germany for a total of €84.8 mln.
The acquisitions are located in Oberhausen, Frankfurt, Heiligenhaus and Öhringen and provide over 150,000 m2 of lettable space.
In addition, the company has acquired a land parcel adjacent to its existing asset in Neuruppin. The properties have been acquired using proceeds of the company’s inaugural €400 mln corporate bond issuance that successfully completed in June 2021.
The parks generate a net operating income (NOI) of €3.4 mln per annum, representing a blended EPRA net initial yield of 4.1% at occupancy of 59%. With 62,000 m2 of vacant space, the assets provide an opportunity to grow income through asset management strategies.
Commenting on the acquisitions, Andrew Coombs, CEO of Sirius Real Estate, said: 'With our strong cash position, Sirius continues to deliver on an attractive pipeline of opportunities generated by our in-house acquisitions team. The new assets provide a mix of warehouse, production, and office space that we know works well for our platform and our customers.
'The assets are in well-established locations that benefit from strong SME demand and growth potential, as well as synergies with existing Sirius business park sites.
'Whilst the assets primarily represent an opportunity for the company to utilise its operating platform to drive the take up of lettable space and reduce service charge leakage, significant refurbishment and development opportunities also exist to provide further potential for value creation.'
The properties include the 77,600 m2 Oberhausen Business Park, acquired for €39.8 mln, which is 63% occupied; a multi-tenanted office asset in Frankfurt, costing €21.2 mln, which is 54% let; a multi-tenanted business park at Heiligenhaus, North Rhine-Westphalia, acquired for €14.2 mln, which is 77.2% let; plus Öhringen Business Park, acquired for €9.02 mln, acquired vacant.
The 16,000 m2 land parcel is located next to its asset in Neuruppin and was acquired for €0.5 mln. It will serve to expand the existing property. Sirius is engaged in negotiations with the current tenant regarding the extension and a possible new lease for the additional developed space.
