Sirius Real Estate is doubling down on its expansion strategy, sealing two new acquisitions in Germany and the UK — and taking its total spend on income-generating assets this year to about €165m (R3.4bn).
The JSE-listed property group has notarised the acquisition of a light industrial park in Dresden, Germany for €23.4m, and finalised the purchase of Bedford Heights, a multi-let business park in the UK for £16.13m, the group said on Wednesday.
Sirius, which owns and operates branded business and industrial parks in Germany, said both deals aligned with the company’s strategy of expanding in high-growth industrial zones and deepening exposure to sectors such as defence.
The Dresden asset, currently occupied by the seller under a one-year leaseback, will be repositioned into a multi-let industrial park once vacated. It yields €2.1m in annual income and was acquired at a 9.13% EPRA net initial yield, it said.
It also becomes Sirius’s fourth site in the Dresden area, where the ongoing development of a €10bn semiconductor plant is expected to spur tenant demand.
Meanwhile, Bedford Heights — a 22,000m2 park with a mix of warehouse, office, studio and leisure space — is 96% let and yields £1.54m annually.
A third of the space is occupied by an electric components manufacturer on a lease exceeding 10 years, while 67% of leases are due for renewal within two years, the group said.
“More than a third of the tenant base has ties to the defence sector, aligning with Sirius’ strategic focus and complementing its nearby sites in Sandy and Milton Keynes,” it said.
Sirius CEO Andrew Coombs said both acquisitions were immediately cash generative and had been secured at compelling entry yields — 9.13% in Dresden and 9.52% in Bedford.
“Dresden benefits from surging investment in the semiconductor space, while Bedford Heights fits neatly into our defence-sector strategy,” he said.
The group also announced the £1.55m disposal of a small, non-core asset in Huddersfield — sold at a 7% premium to book value — as part of its ongoing capital recycling programme.
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