Sirius Real Estate has notarised the acquisition of a multi-tenanted business park in Nuremberg for a total acquisition cost of €13.7m, reflecting an EPRA net initial yield of 7.1%. The purchase will be funded from existing cash resources, with completion expected in January 2021. Sirius is acquiring the asset from a manufacturer of component parts for the European motorcycle and scooter market. Built in 1993, the asset has 13,600m² of gross lettable area and primarily comprises manufacturing space (61%), as well as office (24%), warehouse/logistics (11%) and other uses (4%). There are 138 car parking spaces on site. The business park is currently 91% let to a mix of SME tenants at an average rent of €7.36 per m² with a weighted average lease length of 4 years and produces a total annualised rental income of circa €1.1m.
The park offers Sirius the opportunity to utilise its platform to improve occupancy and rental rates as part of its asset management plans for the asset. The park is situated in a well-developed commercial area of Nuremberg which, with a population of 520,000, is Bavaria’s second and one of Germany’s largest cities. It lies around 4.5km north of the city centre and benefits from easy access to public transport and the A73 motorway.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: "This is a well-located asset acquired on an attractive yield, where we see potential to add value through our asset management initiatives. Nuremberg has a strong and diverse SME sector of which Sirius has good knowledge having owned an asset in the city for over 10 years. We continue to have significant resources to execute our strong pipeline of future acquisition opportunities around Germany’s key cities, for both our own portfolio and our Titanium joint venture.”
