Sirius buys new business park


Sirius buys new business park

Published Date: 2019-12-03 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sirius buys new business park

The Germany property owner will fund the deal with a mixture of debt and the proceeds from recent disposals.

Sirius Real Estate has bought an office complex in Hallbergmoos as it grows its portfolio of branded business parks across Germany. It's paying €20.2 million for the property, which is 29km northeast of Munich, the capital of Germany's Bavaria federal state.

Sirius is a branded provider of mixed-use flexible workspace in Germany and has a portfolio of 60 business parks that it owns or manages across the country, which also provide conventional workspace. It already owns two business parks in the same area as its latest acquisition.

In its results for the six months to end-September, released last week, Sirius said it had around €80 million of financial resources for expansion. It planned to fund acquisitions using its own balance sheet or through its Titanium joint venture with AXA Investment Managers. It will use a combination of funds generated from the recent disposal of five of its assets to the Titanium JV and from the recent extension of a banking facility with Berlin Hyp Amber to pay for this deal.

The fund said the Hallbergmoos property was 55% let to 28 tenants and produced an annual rental income of €960,000 at an average rate of €6.67 per square metre. Tenants include Heinz von Heiden, Mentor Deutschland and Dorma Time + Access. The purchase price, including acquisition costs, reflected a net initial yield of 3.4% owing to the 45% vacancy in the building.

Its shares rose 0.9% to R15.26 yesterday.

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