Sirius Real Estate Limited to acquire business park from ThyssenKrupp in sale and
Sirius, which owns several business and industrial parks in Germany, has acquired a property in the southern part of Essen, close to where it already has some office assets.
Sirius Real Estate Limited () is to acquire a business park in Essen, Germany, for €10.71mln in a sale and leaseback deal.
The acquisition price represents a net initial yield (under the European Public Real Estate, or EPRA measure) of 6.5%. The purchase is expected to go through in the second quarter of this year.
The park is situated on a 34,844 square metre (sqm) plot, which includes a 4,450 sqm parcel of land that offers the potential for development into additional warehouse and office space.
The business park is currently 80% let and produces total annualised rental income of about €830,000, reflecting an average rent of €5.85 per sqm (including car parking).
The weighted average unexpired lease length is 1.4 years, which Sirius said presents it with a range of asset management options and the opportunity to increase income through the re-letting of vacated space and selective investment into the asset.
“The business park we are acquiring at Essen offers a good mix of warehouse and office space, as well as great potential for Sirius to use our asset management capability and local expertise to add value, improve rental tone and explore development of part of the site,” said Andrew Coombs, the chief executive officer of Sirius.
“We were able to proactively secure this high-yielding asset on an off-market basis from Thyssenkrupp directly, demonstrating the power of our local knowledge and network, and we see further opportunities to acquire assets from Germany’s manufacturing and industrial firms looking to free up capital. This presents a positive opportunity to strengthen our pipeline and source the most attractive deals.
“This will be the fifth asset acquired by Sirius Real Estate in the second half of our financial year, bringing our total acquisitions to €46.2mln. Alongside our Titanium joint venture, Sirius has executed €125mln of transactions over this period, underlining our significant presence in the German industrial market,” Coombs said.
The market for #RealEstate transactions in #Germany is expected to pick up in the remainder of the year, according to the latest research by @SavillsGermany: https://t.co/2N9YmPuIvI pic.twitter.com/K74kNW2Srj
— Sirius Real Estate (@SiriusRE) March 10, 2021
Read More: Sirius Real Estate Limited to acquire business park from ThyssenKrupp in sale and