Business
Acquires two business parks and pipeline update
Acquires two business parks and pipeline update.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n \nRNS Number : 4917W Sirius Real Estate Limited 01 August 2018 \n\n1 August 2018\n \nSirius Real Estate Limited\n(\"Sirius Real Estate\" or the \"Company\")\n \nAcquisition of two business parks for €29.8 million and update on the pipeline\n \nSirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, announces that it has completed the acquisition of two business parks in Friedrichsdorf, near Frankfurt, and in Fellbach, close to Stuttgart, for a total of €29.8 million (including acquisition costs).\nThe acquisitions have been funded using a combination of capital raised from the placing in March 2018 and proceeds from asset disposals. In addition to completing the purchase of the Friedrichsdorf and Fellbach sites, the Company has notarised the acquisition of a business park asset located in Mannheim for €9.6 million, which is expected to complete in October.\nThe Company is also in exclusivity to acquire another €33.0 million asset and is therefore well advanced in the deployment of the €100 million of acquisition capability it communicated to shareholders in its year end results, announced on the 4 June 2018.\nThe property in Friedrichsdorf is a mixed-use business park comprising multi-let office and warehouse space constructed in the 1980s and 1990s and is located 20km from Frankfurt. It has been acquired from a consortium of private investors for a total consideration of €17.8 million, reflecting an EPRA net initial yield of 7.1%. The 18,000 sqm site offers around 17,300 sqm of lettable space comprising 8,200 sqm of offices, 8,100 sqm of warehouse space and 1,000 sqm of other space.\nThe asset is currently 91.8% let to 18 tenants producing an annual rental income of €1.36 million, equivalent to an average rent of €6.65 per sqm with a weighted average unexpired lease length (WAULT) of 2.2 years. The attractive and well covenanted tenant base includes Axicorp, Bose and Peiker.\nThe property in Fellbach is a mixed-use business park comprising multi-let office and warehouse space built between the 1960s and 1980s. It has been acquired from an institutional investor for a total consideration of €12.1 million, reflecting an EPRA net initial yield of 7.3%. The 20,300 sqm site provides around 25,500 sqm of lettable space, comprising 2,100...