Sirius Real Estate buys Hamburg business park – Sirius Real Estate says that on 1 March 2018, it acquired a business park in Schenefeld, a town on the edge of Hamburg, for €15.1 million (including acquisition costs).
The Schenefeld business park has been acquired at an EPRA net initial yield of 7.8% and follows on from the €8.4 million Hamburg–Hummelsbüttel acquisition completed in December 2017. Hamburg is one of the key markets in Germany and the two sites combined provide a good platform for Sirius’s first investment into the city. The business park offers c.42,000 sqm of multi-purpose office and warehouse/logistics space. With an annualised rental income of €1.5 million and 71% occupancy, it provides a good combination of both initial income and value-add opportunity.
Andrew Coombs Chief Executive Officer of Sirius Real Estate, said: “This acquisition together with Hamburg-Hummelsbüttel continues the successful recycling of capital into key German commercial markets and our strategy to acquire assets with significant earnings potential. The full reinvestment of the proceeds from the July equity raise and sales of mature and non-core sites is expected to be completed very soon and we are delighted to be able to enter the Hamburg market, the one prime German commercial centre in which the Company was previously not represented. Hamburg is the second busiest port in Europe and is home to many of Germany’s leading corporations.
As a business we have been targeting the Hamburg market for some time now and the two acquisitions in quick succession create a number of operational synergies for us as well as significant opportunity for income and valuation growth.”
SRE : Sirius Real Estate buys Hamburg business park