Sirius Real Estate, the owner and operator of branded business and industrial parks in Germany and the UK, is to acquire a business park in Reinsberg in Saxony, Germany, for €20.4m.
The Reinsberg acquisition is 75% occupied, the majority of which is under a 10-year full repairing and insuring lease to the vendor, generating a rental income of €1.5m per year, Sirius said in a statement on Tuesday.
The 25% vacancy provides Sirius with an opportunity to add value by using its management platform to lease up the space, while having significant day-one long term income.
The purchase price represents a 6% EPRA net initial yield after purchase costs.
The asset, completed in 2014, provides about 37,000m2 of lettable space, of which about 29,000m2 (78.4%) is high-quality industrial production space, and has excellent connections to two major motorways in the area.
Its location close to the Klipphausen business park, which Sirius acquired in February 2024, and another of the company’s parks in Dresden, will allow the company to take advantage of operational synergies in the region to enhance the assets' performance.
“Our first acquisition of the year at Reinsberg follows our significantly oversubscribed €350m bond issuance in January, and demonstrates both the strength of our pipeline and our ability to transact quickly,” Sirius CEO Andrew Coombs said.
“The acquisition takes advantage of a situation where we can add income and also have an opportunity for significant value creation. The purchase shows how we are able to leverage our platform to work with asset owners on partial sale and leaseback transactions that help them better manage their balance sheets while providing us with opportunities to enhance our portfolio,” he added.
At the end of January the group secured a new debt package at its Saarbrücken business park in southwest Germany.
Earlier in that year it raised €350m through a senior unsecured corporate bond issuance, maturing in 2032 and carrying a 4% coupon. The issuance was about five times oversubscribed.
In December, Sirius completed the acquisition of a development site in Munich, immediately adjacent to its Munich-Neuaubing business park, for €13.3m.
The acquisition allowed the company to secure the final corner of a well-located 130,000m2 estate in the Bavarian capital.
In November, the group reported a 14.5% increase in funds from operations, while it has made acquisitions worth €141.5m in the six months to end-September.
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