Sirius winds up Krefeld transaction

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Sirius winds up Krefeld transaction

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Published Date: 2018-01-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sirius winds up Krefeld transaction

It's the third site that Sirius has bought in the city as it takes advantage of strong demand for conventional and flexible workspace by SMEs

Sirius Real Estate has bought a business park in Krefeld, a city north-west of Düsseldorf in Germany, for €9.2 million including acquisition costs. The business park has been acquired at a net initial yield of 6.7%.

It's the third site that Sirius has bought in Krefeld, which is a market the company says it knows well. The business park has more than 10-thousand square metres of modern, quality office and warehouse space, with occupancy of 72% and annualised rental income of €0.7 million.

"The city is commercially vibrant with excellent links to Dusseldorf and across Germany," CEO Andrew Coombs said in a statement. "We already have 17 793 sqm of lettable workspace in Krefeld so we know the types of workspace that are in undersupply. We will use this local knowledge and the operational synergies available to us to add rental income, alongside investing in re-branding and transforming sub-optimal areas."

Sirius targets business property for small and medium-sized businesses in Germany and says there has been strong demand from these companies for the mix of conventional and flexible workspace included in its portfolio. The German economy recorded its fastest growth in output in the third quarter of last year since April 2011.

Its shares fell 1.3% yesterday to R11.10. They have gained 44% over the past year.



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