Sirius picks up three German business parks for €26m

The transactions comprise a deal in Norderstedt, Hamburg for €9.1 mln; one in Nuremberg for €13.7 mln; and the most recent acquisition for €3.2 mln, immediately adjacent to the company’s existing Mannheim II business park.

The assets have been acquired at a blended EPRA net initial yield of 7.2%, and generate a total €1.9 mln of annualised net operating income. They provide a mix of approximately two-thirds production and storage space and one-third out-of-town office.

Andrew Coombs, Sirius CEO said: 'Our most recent acquisitions at Mannheim, Norderstedt and Nuremberg see us drawing on Sirius’s on the ground knowledge of local markets to acquire assets at attractive yields offering a combination of secure income and value-add potential.

'These business parks are immediately accretive to earnings and signal a return to acquisitive growth for the company after holding back whilst assessing the impact of Covid-19 on the marketplace.'

The company acquired the assets on an unencumbered basis using existing cash resources. Sirius said it had significant finance available for further deals, alongside seeking assets for its Titanium joint venture.

The new asset, located in the Käfertal commercial area of Mannheim, previously formed part of the company’s existing Mannheim II asset that it acquired in October 2018 and covers 3,000 m2 of space.

The acquisition reflects an EPRA net initial yield of 6.6%. It is currently 93% occupied by a total of seven tenants with an average rent of €6.93 per m2, and an annualised gross income of €235,226.

Coombs added: 'Our latest acquisition in Mannheim’s Käfertal commercial area provides significant operational synergies and we believe there is potential to unlock value when we consider the asset alongside our existing adjacent business park, Mannheim II.

'As we enter the new year, we continue to benefit from a strong cash position and are focused on executing our healthy pipeline of further acquisitions.'