Business
Sirius acquires two business parks for EUR40m
Sirius acquires two business parks for EUR40m.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n\nSIRIUS REAL ESTATE LIMITED\n(Incorporated in Guernsey)\nCompany Number: 46442\nJSE Share Code: SRE\nLSE (GBP) Share Code: SRE\nLEI: 213800NURUF5W8QSK566\nISIN Code: GG00B1W3VF54\n \n12 February 2024\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\", the \"Company\" or the \"Group\")\n \nSirius Real Estate acquires two more business parks in Germany for €40 million\n \nSirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has notarised the acquisitions of two business parks, one in Köln (Cologne) and the other in Göppingen, for a total acquisition cost of approximately €40 million (£34 million). The acquisitions have been made using the proceeds of November's £147 million (€165 million) capital raise.\n \nThis follows on from the three UK acquisitions in North London at the end of last year for £33.5 million. The two recently notarised business parks in Germany add just under 55,000 sqm of primarily light industrial and production space to the Group's c. 1.9 million sqm German portfolio.\n \nThe business park in Köln, Germany's fourth largest city, in Nord-Rhein Westphalia, comprises 19,114 sqm of principally light industrial space. The property has been notarised at a price of €20.0 million and currently generates total rental income of €1.67 million and an annualised net operating income of €1.56 million, representing a gross yield at acquisition of 8.4% and an EPRA net initial yield of 7.3%. The site has an occupancy rate of just over 89%, with a weighted average unexpired lease term (\"WAULT \") of 2.4 years and a well-diversified, stable tenant structure. The park offers a number of strong value add opportunities to drive rental growth, including accessible under-renting which Sirius has identified. \n \nIn Göppingen, a city in the state of Baden-Württemberg, south east of Stuggart in southern Germany, Sirius is acquiring a multi-tenanted business park with a total lettable area of approximately 35,160 sqm across primarily light industrial and production space. The acquisition has been notarised at €19.8 million and generates total rental income of €1.78 million and an annualised net operating income of €1.47 million, reflecting a gross...