Sirius Real Estate is pleased to announce the completion of the acquisition of the Dresden business park for €28.6 million (including acquisition costs).
The site has 53,200 sqm of gross lettable area of which 45.9% is offices and 39.3% is warehouses and the rest is a structural vacancy with an opportunity for development into further office space. The occupancy upon acquisition is 65.7% across a broad base of 60 tenants paying a total annual rental income of €2.78 million with a weighted average lease length remaining of 3.3 years. It is being acquired on an 8.3% EPRA net initial yield.
The acquisition has been initially purchased with equity but will be financed with the new BerlinHyp facility that is expected to be drawn down in October.
Andrew Coombs, Chief Executive Officer, said, “This is a good site with the right mix of existing income combined with the potential for us to add our expertise in developing the vacant space to lift occupancy and capital values significantly. We are also making good progress towards completing the acquisition of the Wiesbaden business park currently under notarization.”