Sirius Real Estate
has completed the acquisition of a business park in the northeast of Mannheim in South West Germany, for €9.62m, reflecting an EPRA net initial yield of 6.0%. The acquisition was funded using a combination of capital raised from the placing in March 2018 and proceeds from asset disposals. With a gross lettable area of 15,000m² comprising office and warehouse space, the park is currently 68.9% leased to 57 tenants producing annual net operating income of €576,000. The weighted average lease expiry is 1.7 years.
The business park is well located in a strong commercial area on Weinheimer Strasse, six kilometres from the city centre and five kilometres from our other site in Mannheim, Sirius Business Park Mannheim. The new park is currently let to a broad range of businesses, including McFit Global Group
, DEKRA Akademie
, and Lapis Drucktechnologie
In addition to the acquisitions already completed this year totalling €75.5m, the company has entered into exclusivity to acquire a further €59.7m of assets and is close to completing the deployment of the €100m of acquisition capability it communicated to shareholders in the year-end results.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “Located on a large plot with a short weighted average lease length in an area where rents have been rising over the past five years, our second business park in Mannheim is an exciting opportunity for Sirius to enhance income and overall value. This acquisition plays to the strengths of our integrated business model and track record of achieving efficiencies at sites we acquire in and around markets where we already have existing business parks.”