LONDON: Sirius Real Estate, a leading provider of conventional and flexible workspace in Germany and the U.K., has bought a business park in Klipphausen, near Dresden, along with an adjacent land parcel for €13.75 million (£11.73 million). The deal is part of the company’s expansion strategy, funded by its €165 million (£147 million) capital raise in November 2023.

The business park, which covers about 17,700 sqm of modern light industrial and production space, will be converted into a multi-tenanted site by Sirius. The company has already received leasing interest from multiple parties, exceeding the available space. Sirius also plans to develop the additional 10,000 sqm land parcel that comes with the acquisition.

The seller, a corporate owner occupier, will vacate the property within six months, paying a rent of €200k per month to Sirius. This will give Sirius time to prepare the site for its new tenants and invest in its improvement.

The property is located in the town of Klipphausen, near Dresden, the capital of the Saxony state in Germany. The area is known as “Silicon Saxony”, a hub for nearly 300 SME businesses, and has good transport links and connectivity. Sirius already owns and operates another business park in or near Dresden, which will allow it to benefit from operational synergies and local market knowledge.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “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 €165 million (£147 million) 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 €90 million (£77.1 million) of acquisitions in that time and are in advanced discussions on a further €60 million (£51.4 million) of additional opportunities, leaving us well placed to support the continued long-term growth of the Group.”