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Sirius Real Estate announces 11 000sqm of new lettings

Andrew Coombs, Chief Executive Officer of Sirius Real Estate.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate.

Sirius Real Estate has announced the completion of three large new lettings.

A leading German sports car manufacturer has signed a five-year lease for the entire 6 800 square meter office building at the Sirius Business Park Stuttgart-Weilimdorf, completing the asset management plan for the site.

The building was acquired in 2015 on the understanding that one of the tenants (with three years remaining on its lease) intended to vacate, which created an opportunity to find a new occupier and maintain the building’s full occupancy at a higher rent. While this new tenant increases Sirius’ exposure to the automotive sector, the portfolio’s total direct exposure to the sector remains less than 5%.

A division of the Berlin government has signed a ten-year lease at Sirius Business Park Berlin Tempelhof on 2,200 square meters of office space at a rent of €14.35 per square meter. This transaction highlights the quality of Sirius’s refurbished office space in Tempelhof, as well as the strength of demand for offices in and around the city of Berlin. It also completes the letting of the 7,600 square meter building, which Sirius acquired in a derelict state and has subsequently transformed into high quality office space.

CARE Deutschland-Luxemburg, part of the leading global humanitarian charity, has taken a ten-year lease on 1,950 square meters of offices at Sirius Business Park Bonn-Siemensstrasse.

The company is at an advanced stage of negotiations with Daimler AG, the owner of Mercedes- Benz, for a five-year extension to its lease on circa. 40,000 square meters of office, production and storage space at Sirius Technologiepark Kirchheim. Daimler has been a tenant here for many years, but always on short leases, so this new lease is a strong indication that our Kirchheim site will be strategically important for their operations for many years to come.

Overall the Company remains well advanced in the deployment of the €100 million of acquisition capability it communicated to shareholders in its year-end results. So far, it has committed €39.4 million into completing the acquisitions of business parks in Friedrichsdorf and Fellbach and has notarised a business park in Mannheim, which is expected to complete in October. In addition, the company has entered into exclusivity to acquire another €59.7 million of assets.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “These lettings demonstrate the effectiveness of our asset management approach, which focuses on the mix of long-term stable income alongside high-yielding flexible income. We have secured some very well covenanted blue-chip and government tenants on long-term leases, which are expected to be earnings accretive for those business parks.

“Given the quality of these lettings and the current level of activity in our pipeline, we are optimistic about the potential to further enhance the value and income from our portfolio.”