Sirius seals €40m deal for Oberhausen business park

The deal was struck using proceeds of the company's recent €400 mln corporate bond issuance. The property adds a further 77,600 m2 of lettable office and industrial space to the company's 1.5 mln m2 portfolio.

Andrew Coombs, Sirius CEO, said: 'Oberhausen is a good acquisition that provides the company with strong day one cash flow, and also the potential to grow income in the medium term by letting vacant space through targeted investment and refurbishment. This is where the Sirius platform excels.

“We are pleased to be making good progress on our pipeline of acquisitions, with a strong cash position following our €400 mln bond issuance in June, and we are in active discussions on a number of other promising opportunities in Germany.”

Oberhausen Business Park is located in a commercial area of the city and offers a mix of uses including around 47,400 m2 of out-of-town offices, 19,200 m2 of warehouse space, 4,600 m2 of storage and 6,400 m2 of other space.

The property generates a net operating income of €2.33 mln per annum, with an average rent of €3.29 per m2, reflecting a net initial yield of 5.9% at 63% occupancy. The asset has a remaining weighted average lease expiry of 3.2 years.

Justin Meissel, CIO and MD Europe at Henley Investments, said: 'We acquired the Oberhausen asset in a state of disrepair and financial distress. Over our hold period we extensively refurbished the entire property, creating a local destination for employers seeking high quality yet affordable office, light industrial and storage space. We continue to actively seek other investment opportunities in Germany.'

Earlier this year, Henley cemented its position in central Europe with the purchase of its first shopping centre in Poland through the acquisition of Galeria Pestka from a global investment manager.

Ian Rickwood, CEO, added, 'We remain committed to deploying capital in Europe alongside our UK and US business.'