Sirius deploys more of its acquisition war chest


Sirius deploys more of its acquisition war chest


Published Date: 2020-01-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sirius deploys more of its acquisition war chest

The German business park operator says the last month has been particularly successful on the acquisitions front.

Sirius Real Estate has bought two business parks as it deploys an acquisition war chest targeted at conventional and flexible office space in Germany.

The operator of branded business parks has bought Neuss II, a business park near Düsseldorf, and Neuruppin Business Park, in the Brandenburg region.

Neuss II was acquired from a regional family real estate office for €19.1 million, including acquisition costs, reflecting an EPRA (European Public Real Estate) net initial yield of 5.4%. It said the property fit well with its strategy of buying assets at low capital values, with low average rents compared to the local market and located around key German cities.

Neuruppin is located 4.3 km south of Neuruppin city centre, 75 km north west of Berlin and is expected to benefit from a €1.4 billion road infrastructure expansion project on the main highway between Berlin and Hamburg, anticipated to complete in 2022. It was bought from Otto Immobilien GmbH & Co. for €14.3 million, reflecting an EPRA net initial yield of 8.6%.

The Company has now completed €98 million of the €170 million in acquisition capability that was set out in its interim results announced at the end of November. These acquisitions provide a total of 136,000 square metres lettable area, with 14% vacancy, producing a current annual rent of €7.7 million. It said this reflected a blended EPRA net initial yield of 6.5%. It said it was also reviewing a number of potential acquisitions for investment of its remaining designated acquisitions capital.


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