Sirius Real Estate, the German business park owner, has completed the acquisition of a 8,800 sqm mixed-use business park in Fellbach, near Stuttgart, for €9.2m, reflecting an EPRA net initial yield of 6.0%.
The asset is located adjacent to a business park already owned by Sirius, with the acquisition creating an enlarged business park comprising over 36,000 sqm of gross lettable area.
The park, which is located 7.8 km to the north-west of Stuttgart, comprises a range of uses including office space (62%), warehouse/logistics (32%) and other space (6%).
It is currently 94.6% let to Daimler AG as the single tenant, at an average rent of €7.04 per sqm, producing a total annualised rental income of around €730,000.
Daimler is expected to vacate the office element of the property by the end of June 2021, and the warehouse element of the property by December 2021, after which Sirius will seek to implement a range of asset management initiatives including the upgrade of space in order to capture local market demand for office and warehouse space.
Andrew Coombs, chief executive, said: “With the major tenant moving out shortly after completion, our focus is on growing income through the capture of reversion and reduction in service charge leakage.”
SRE : Sirius Real Estate acquires Stuttgart business park