Sirius Real Estate, the leading owner and operator of branded business and industrial parks in Germany and the UK, has notarised the acquisition of a multi-tenanted business park in Mönchengladbach for €17.2m (£14.7m), representing an 8.21% Net Initial Yield (NIY).
Following the successful disposal of its BizSpace Tyseley business park at a 20% premium to book value, Sirius has also exchanged contracts for the sale of its BizSpace Cardiff site for €5.9m (£5.1m), a 10% premium to its book value. This marks the fourth UK disposal this financial year, with an average premium of 13.5% to book value.
The Mönchengladbach site is being acquired through a sale and partial leaseback agreement with the current owner, SMS Group, a globally recognised engineering and plant construction company occupying approximately 26% of the site. The new leases, secured for terms between 3 and 10 years, have a WALE of six years and contribute to the asset’s day-one rent roll of €2.43m (£2.08m).
The 124,599 m² business park has a gross lettable area of 70,899 m², 65% of which is production and warehouse space. It includes a 25,773 m² car park with around 1,000 spaces and is currently 66% occupied, leaving significant value-add potential for Sirius.
The Mönchengladbach asset is strategically located near major economic hubs such as Düsseldorf, Duisburg, and Cologne in North Rhine-Westphalia, where Sirius already owns multiple business parks, creating operational synergies. The site also benefits from strong transport connectivity to Germany’s national and international road networks.
Sirius entered into terms to sell BizSpace Cardiff in September 2023, subject to planning approval, which was granted in December 2024. The property, located on Cardiff’s city fringe, consists of 4,106 m²of office space and is set to be converted into student accommodation by the buyer.
Upon completion of the Mönchengladbach acquisition, Sirius will have deployed €118m (£100.4m) of the €181m (£152m) raised in July 2024 on six income-producing assets, generating a combined day-one net operating income of €8.5m (£7.2m). The Group maintains balance sheet headroom for at least €100m (£85m) of additional debt funding while remaining within its leverage targets. Sirius continues to receive interest from Sparkasse banks for individual asset financing at rates below 4%, including a recent €13m (£11.1m) five-year loan with Sparkasse Saarbrücken.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “The acquisition in Mönchengladbach allows us to take ownership of an asset with enormous potential. It will provide both day-one income and long-term opportunities to attract occupiers through asset management, while benefiting from operational synergies with our existing portfolio in the region. We are also pleased to have completed another sale and leaseback transaction, reinforcing our ability to help corporate owner-occupiers extract value from their property assets while maintaining operational continuity. We see significant potential for similar deals in Germany.”
“The disposal of our Cardiff asset at a 10% premium to book value further demonstrates our ability to optimise the value of non-core assets, recycling proceeds into properties that offer greater potential for value creation through Sirius’ asset management platform.”
For further details, visit Sirius Real Estate.
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