Sirius Real Estate has completed the acquisition of four business parks and one land parcel for a total of approximately €84.8m. The properties are located in Oberhausen, Frankfurt, Heiligenhaus and Ohringen and offer over 150,000m² of lettable space. In addition, the company has acquired a land parcel adjacent to its existing asset in Neuruppin. The properties have been purchased using proceeds of the company’s inaugural €400m corporate bond issuance that successfully completed in June 2021.
Together the acquisitions generate day one net operating income (NOI) of €3.4m per annum, representing a blended EPRA net initial yield of 4.1% at occupancy of 59%. With 62,000m² of vacant space, the assets provide an opportunity to grow income through the letting up of vacant space, accretive refurbishment and selective development.
Commenting on the acquisitions, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “With our strong cash position, Sirius continues to deliver on an attractive pipeline of opportunities generated by our in-house acquisitions team. The new assets provide a mix of warehouse, production, and office space that we know works well for our platform and our customers. The assets are in well-established locations that benefit from strong SME demand and growth potential, as well as synergies with existing Sirius business park sites. Whilst the assets primarily represent an opportunity for the company to utilise its operating platform to drive the take-up of lettable space and reduce service charge leakage, significant refurbishment and development opportunities also exist to provide further potential for value creation.”