Industrial parks specialist Sirius Real Estate has completed the acquisition of a business park in Neckartenzlingen, south of Stuttgart, for a total cost of €34.5 mln.
The transaction will be financed using existing cash resources, and reflects an EPRA net initial yield of 5.6%.
As a result of this transaction Sirius has completed the acquisition of 254,100 m2 of business parks, industrial space, out of town office space and a land parcel across nine assets in Germany this financial year, representing a total investment volume of €153.9 mln. In addition, Sirius entered the UK market in November with the acquisition of BizSpace, a provider of regional light industrial, workshop, studio and out of town office units to a wide range of businesses for an enterprise value of £380 mln.
The Neckartenzlingen business park asset comprises three mixed-use buildings, which Sirius is acquiring from two separate vendors, Hirschmann Electronics GmbH and Logwin Holding Immo Aschaffenburg GmbH. Built between 1955 and 1991 and previously held as one combined asset, the property has 54,515 m2 of gross lettable area and primarily comprises production space (36%), warehouse space (30%) and out of town offices (27%) as well as other uses (7%). There are 893 car parking spaces on site.
The business park is currently 80% let to two tenants in the electronics and communications sectors, at an average rent of €3.84 per m2. The asset produces a total annualised rental income of circa €2.2 mln and has a weighted average lease expiry of 8.1 years, providing stable, long term cashflows with the opportunity to grow income through a range of asset management opportunities, including the leasing of the remaining 10,700 m2 of vacant space.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: 'This is a well-located asset acquired at an attractive price point and underpinned by a long WALE, providing a stable income from day one. At the same time, it is in line with our usual strategy of acquiring assets where there is an opportunity for us to add value through our platform driven asset management initiatives, such as reducing vacancy, while also benefiting from potential redevelopment opportunities.'
