Sirius Real Estate has purchased a business park in Schenefeld, near Hamburg for €15.1m. The property has been acquired at an EPRA net initial yield of 7.8% and follows the €8.4m Hamburg-Hummelsbüttel acquisition completed in December 2017. Hamburg is one of the key markets in Germany and the two sites combined provide a good platform for Sirius’s first investment in the city.
The business park offers c.42,000 m² of multi-purpose office and warehouse/logistics space. With an annualised rental income of €1.5m and 71% occupancy, it provides a good combination of both initial income and value-add opportunity.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “This acquisition together with Hamburg-Hummelsbüttel continues the successful recycling of capital into key German commercial markets and our strategy to acquire assets with significant earnings potential. The full reinvestment of the proceeds from the July equity raise and sales of mature and non-core sites is expected to be completed very soon and we are delighted to be able to enter the Hamburg market. Hamburg is the second busiest port in Europe and is home to many of Germany’s leading corporations. As a business, we have been targeting the Hamburg market for some time now and the two acquisitions in quick succession create a number of operational synergies for us as well as a significant opportunity for income and valuation growth.”
