Sirius Real Estate has notarised the acquisition of a business park in Klipphausen, near Dresden, together with an adjacent land parcel for an acquisition price of €13.75m.
The acquisition has been made using the proceeds of November 2023’s €165m capital raise. It represents the third asset to be acquired by Sirius in Germany this calendar year, and the sixth asset to be acquired across both Germany and the U.K. in recent months.
The site has been acquired from a corporate owner-occupier who plans to vacate the building, which is expected to be six months after completion. Sirius’ plan is to convert the site, which currently comprises c. 17,700m2 of modern primarily light industrial and production space, into a multi-tenanted business park. Sirius’ asset management platform has identified multiple parties interested in leasing space at the site, which in aggregate is already in excess of the site’s entire leasable area. The plan is also to expand the park through the development of the adjacent 10,000m2 land parcel which forms part of the acquisition.
To allow a smooth departure from the property, Sirius has granted the vendor a six-month lease, which can be extended by two months at their option, in return for a rent of €200,000 per month. This short-term lease will provide Sirius with valuable preparation time ahead of the vendor vacating, as well as contribute to the planned investment into the site.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “This acquisition presents the Company with a strong value-add opportunity to grow income and value through our operating platform. We are encouraged that we already have multiple parties who have expressed leasing interest in the business park, representing in aggregate more than the entire space available. Additionally, the adjacent land parcel offers significant development potential in an area benefiting from extremely high occupier demand for light industrial, affordable assets in out-of-town locations. We are continuing to make good progress on our acquisition pipeline, following our well supported €165m equity raise in November and remain extremely active in both Germany and the U.K., with this asset to be our third acquired in Germany this year, and our sixth at Group level since November. We have now committed to over €90m of acquisitions in that time and are in advanced discussions on a further €60m of additional opportunities, leaving us well placed to support the continued long-term growth of the Group."
Image provided by FTI Consulting.
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