Sirius Real Estate is continuing with its ambitious growth strategy with the acquisition of a multi-tenant business park in Hamburg, Germany, for €31.9m (R634m).
The company, which owns and operates branded business and industrial parks in Germany and the UK, said the latest acquisition in Hamburg-Rothenburgsort, northern Germany’s largest continuous industrial area, would generate day-one income.
The site, with a gross lettable area of 29,448m2, is close to a number of Sirius’ other assets in the region, providing operational synergies.
The purchase terms reflect an EPRA [European Public Real Estate Association] net initial yield of 6.1%. The business park currently generates €2.15m of annualised rent roll per annum and is 89% occupied, providing a number of value creation opportunities through leasing of vacant space and future development.
CEO Andrew Coombs said, “The acquisition of our fifth Hamburg business park will generate day-one income and offers further significant potential to improve rental tone, grow occupancy and grow revenue through onsite development.”
Following the group’s acquisition of a business park in nearby Lübeck earlier this year, the asset is another exciting addition to Sirius’ portfolio in the Hamburg region and wider Northern German area, he added.
“The transaction also builds on the momentum we have achieved this calendar year, having made over €340m of acquisitions in the UK and Germany.
“Due to its strong economy and supportive macro tailwinds, and having made a number of significant acquisitions in the UK in the last couple of years, our main focus going into 2026 will be on seeking attractive investments in Germany, where we have a strong pipeline of opportunities that we are currently exploring,“ he said.
In October the group acquired a defence-anchored business park near Munich for €43.7m, with a gross lettable area of 27,180m².
Other recent acquisitions include 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.
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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