Sirius Real Estate has completed the acquisition of an office building adjacent to Bochum Business Park in Germany. The property was bought for a total consideration of €6.7m including acquisition costs reflecting an EPRA net initial yield of 5.5%. The vendor is Hausser-Bau.
The scheme, constructed in 1970, provides 4,200m² of lettable space (81% office space, 15% storage and 4% service space) and 71 parking spaces. It is 100% let, producing an annual total income of circa €428,000 and annual net operating income of €370,000, reflecting a weighted average rent of €8.00 per/m² with a remaining WALT of 2.2 years. The principal tenant is ThyssenKrupp Bilstein, a subsidiary of the giant ThyssenKrupp conglomerate which designs and manufactures shock absorbers.
Bochum is located mid-way between Dortmund and Essen, in North Rhine-Westphalia, the third-largest urban area in the European Union. The property is well situated in Bochum-Hofstede, north of the city centre and within walking distance of a U-Bahn with easy access to the A40 and A43 motorways.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “Acquiring this property was a logical next step following the success we have had with the Bochum Business Park since its acquisition in March this year. Not only does the acquisition of an adjacent property provide us with additional asset management possibilities, as well as the opportunity to realise operational synergies, but also offers us marriage value and helps deliver on our strategy to increase the average lot size of our assets. Following the completion of the acquisition of Alzenau, notarised at €44.5m in July, we have already made a good start with this strategy”.
