Business
Sirius to acquire defence-anchored business park
Sirius Real Estate Limited has notarised the acquisition of a defence-anchored business park in Kiel, Germany, for €93.4 million, which is predominantly let to Rheinmetall and other defence sector companies. The property, situated on a 226,600 sqm plot with 78,170 sqm of gross lettable area, is 98.5% occupied and generates €7.78 million in annual rental income with a weighted average lease expiry of 4.0 years, reflecting an EPRA Net Initial Yield of 8.2%. The acquisition includes a 955 sqm development due for completion in 2027, which will be occupied by an existing tenant under a new 10-year lease. This strategic purchase further strengthens Sirius's portfolio of defence-related assets, with over €200 million invested in this sub-sector in the past 12 months. Disclaimer*
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 \n30 March 2026\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\", the \"Company\" or the \"Group\")\nSirius to acquire defence-anchored business park in Kiel for €93.4 million\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 acquisition of a business park in Kiel, Germany, for €93.4 million (including acquisition costs), adding another defence anchored asset to its portfolio. The property is predominantly let to Rheinmetall, Germany's largest defence company, together with a number of other companies in the defence, infrastructure, testing and automation sectors.\nLocated in Kiel, the capital of the state of Schleswig-Holstein in northern Germany and one of the country's strategic defence hubs. The property sits on a 226,600 sqm plot and offers a gross lettable area of 78,170 sqm. It comprises production and warehouse, office and laboratory space.\nThe purchase terms reflect an EPRA Net Initial Yield of 8.2%, and the business park, which is currently 98.5% occupied, generates €7.78 million of annual rental income, with a weighted average lease expiry (WALE) of 4.0 years.\nRheinmetall undertakes research and development of electrical systems for land vehicles at the site, an area of significant growth for the company, while the second largest tenant on site produces rail locomotives for European use.\nThe acquisition also includes a 955 sqm development which is on site and due to complete in 2027. At this time, an existing tenant, specialising in systems automation and robotics integration, will take occupation of a new building under a new 10-year lease, further enhancing the asset's rent roll.\nSituated on Germany's Northern Coast leading directly into the Baltic Sea, Kiel is a major maritime industrial defence and transport hub, with its port and shipyard area and natural inlet making it a strategic logistics and manufacturing base for the German Navy, as well as the commercial maritime industry. \nThis acquisition further bolsters Sirius' portfolio of industrial estates let to b...