LONDON: Sirius Real Estate has finalized the acquisitions of two strategic business parks in Germany and the United Kingdom, adding €4.5 million in annualized income to its €2.7 billion portfolio.
The company acquired a business park in Dresden for €23.4 million, including costs, and Chalcroft Business Park in Southampton for £38.6 million. The latter deal includes an adjacent 4.5-acre development site with outline planning permission, purchased for an additional £4.2 million.
The Dresden transaction was expedited following notarisation in August, supported by a one-year sale and leaseback agreement. Sirius plans to reposition the site as a multi-tenanted business park, its fourth in the region, which currently generates €2.1 million in net operating income at a 9.13% EPRA net initial yield.
In Southampton, completion hinged on increased on-site power capacity to support future development. The park yields £2.1 million in net operating income and was acquired at a 5.5% EPRA net initial yield. Sirius is in discussions with a prospective tenant regarding the build-out of the adjacent land.
“These acquisitions immediately enhance our income profile and offer compelling opportunities for value creation through active asset management,” said Andrew Coombs, CEO of Sirius Real Estate. “They align with our strategy to expand flexible, out-of-town business and industrial space tailored to local demand.”
Both assets benefit from strong transport connectivity and are located in regions experiencing robust investment activity. Dresden’s appeal continues to grow following Taiwan Semiconductor Manufacturing Company’s €10 billion facility, while Southampton remains a key logistics hub on the South Coast.
Sirius has secured nearly €300 million in new investments this year, reinforcing its ability to execute accretive transactions and unlock long-term value through development and repositioning.