Sirius Real Estate, the owner and operator of business parks in Germany, has completed the acquisition of three assets totalling €26m, signalling a return to acquisitive growth for the company after holding back whilst assessing the impact of COVID-19.
The acquisitions are in Norderstedt, Hamburg for €9.1m, Nuremberg for €13.7m and Mannheim for €3.2m. They generate an annual income of €1.9m, providing a blended net initial yield of 7.2%.
The assets provide a mix of around two-thirds production and storage space and one-third out-of-town office.
Chief executive Andrew Coombs said: “Our most recent acquisitions at Mannheim, Norderstedt and Nuremberg see us drawing on Sirius’s on the ground knowledge of local markets to acquire assets at attractive yields offering a combination of secure income and value-add potential.
“These business parks are immediately accretive to earnings and signal a return to acquisitive growth for the company after holding back whilst assessing the impact of COVID-19 on the marketplace. Two thirds of the total space acquired relates to production and storage space whilst the remaining office space provides the company with the opportunity to offer its high yielding out-of-town flexible office products.
“Our latest acquisition in Mannheim’s Käfertal commercial area provides significant operational synergies and we believe there is potential to unlock value when we consider the asset alongside our existing adjacent business park, Mannheim II.
“As we enter the new year, we continue to benefit from a strong cash position and are focused on executing our healthy pipeline of further acquisitions.”
SRE : Sirius Real Estate returns to acquisitive growth with three deals