LONDON: Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has notarised the acquisition of a business park in Reinsberg in Saxony, Germany, for €20.4 million.
The Reinsberg acquisition is 75% occupied, the majority of which is under a 10-year full repairing and insuring lease to the vendor, generating a rental income of €1.5 million per annum. The 25% vacancy provides Sirius with an opportunity to add value by utilising its management platform to lease up the space, while having significant day one long term income. The purchase price represents a 6% EPRA NIY after purchase costs.
The asset, completed in 2014, provides approximately 37,000 sqm of lettable space, of which around 29,000 sqm (78.4%) is high quality industrial production space, and has excellent connections to two major motorways in the area. Its location close to the Klipphausen business park, which Sirius acquired in February 2024, and another of the Company’s parks in Dresden, will allow Sirius to take advantage of operational synergies in the region to enhance the assets’ performance.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “Our first acquisition of the year at Reinsberg follows our significantly oversubscribed €350 million bond issuance in January, and demonstrates both the strength of our pipeline and our ability to transact quickly. The acquisition takes advantage of a situation where we can add income and also have an opportunity for significant value creation. The purchase shows how we are able to leverage our platform to work with asset owners on partial sale and leaseback transactions that help them better manage their balance sheets while providing us with opportunities to enhance our portfolio.”
Sirius Real Estate completes over €100 million of acquisitions in Germany and UK