Sirius Real Estate will acquire a defence-anchored business park near Munich for €43.7m, it said on Monday.
The owner and operator of branded business and industrial parks in Germany and the UK said the business park in Feldkirchen, on the outskirts of Munich, had a gross lettable area of 27,180 square metres.
The park is well connected, with a nearby S-Bahn train station, and is a 20-minute drive from central Munich. It is also located less than a 10-minute drive from Sirius’ Grasbrunn Business Park.
Feldkirchen business park generates €3.4m of annualised rent roll and is 94% occupied with a 7.8-year weighted average unexpired lease term, though there were several smaller tenants whose leases were shorter and offered potential for upside from their current rental levels, it said.
The asset is anchored by Excelitas, a designer and manufacturer of optical and photonic solutions for defence, aerospace, medical and industrial applications, which occupies 72% of the park on a lease with 10.2 years to expiry.
After the transaction, Sirius will have acquired about €340m of income-producing assets across the UK and Germany so far this year. This has included properties in Dresden, Lübeck, Munich, Reinsberg, Monchengladbach, Hartlebury, Bedford, Oldham and Chalcroft.
The group recently tapped the bond markets for a further €105m of notes — its second tap of a €359.9m bond due in November 2028. The proceeds enhanced the group’s capacity to pursue accretive growth, CFO Chris Bowman said at the time.
Sirius CEO Andrew Coombs said in the group’s first-half trading update earlier this month that it expected its acquisition programme to be more weighted towards Germany in the last six months of the financial year and this transaction underscored that sentiment.
“Feldkirchen is an asset which benefits from strong existing fundamentals and offers future potential for our platform to exploit. Munich has the strongest economy of any German city and is one of Germany’s most resilient and sought-after logistics hubs, being home to a strong and diverse range of industries spanning ... [the] manufacturing, finance, media and technology sectors,” he said.
“The acquisition also aligns with our strategic focus on positioning ourselves to benefit from increased defence spending, being anchored by a high-quality manufacturing tenant that serves this sector.”
In June the group bought an industrial property in Geilenkirchen for €12.9m, close to the Belgian and Dutch borders, which is home to a large Nato airbase.
Germany has increased its investment in defence as Europe ramps up its defence budget to protect economic stability and ease its reliance on the US.
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