Sirius Real Estate has announced the completion of a business park acquisition located in the northeast of Nannheim in South West Germany for €9.62 million, reflecting an EPRA net initial yield of 6.0%.
The business park acquisition was funded using a combination of capital raised from the placing in March 2018 together with proceeds from asset disposals. The park is currently 68.9% leased to 57 tenants producing annual net operating income of €576,000 from the gross lettable area of 15 000 square meters. The weighted average lease expiry is 1.7 years.
The new park is currently let to a broad range of businesses including McFit Global group, one of the largest fitness centre chains in Europe; DEKRA Akademie; a training institute; and Lapis Drucktechnologie, a printer and laminator manufacturer.
In addition to the completed acquisitions this year totalling €75.5 million, Sirius has entered into exclusivity to acquire a further €59.7 million of assets, close to completing the deployment of the €100 million of acquisition capability it communicated to shareholders in the year-end results.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate comments:
“Located on a large plot with a short weighted average lease length in an area where rents have been rising over the past five years, our second business park in Mannheim is an exciting opportunity for Sirius to enhance income and overall value.”
“This acquisition plays to the strengths of our integrated business model and track record of achieving efficiencies at sites we acquire in and around markets where we already have existing business parks.”