Sirius Real Estate has completed the sale of its Bremen Hag Business Park for €3.8 million. The listed REIT has notarised the sale of its Bremen Dötlinger-Strasse Business Park for €6.3 million, both in line with book value.
Bremen Hag is a very large site, located next to the container port in Bremen Harbour which holds limited appeak amongst prospective tenants. The property was loss-making with a net operating expense of around €300,000 with occupancy of less than 19%. The recent sale will increase overall occupancy of the current portfolio by more than 2.5% removing 48 000 square meters of vacant space.
Bremen Dötlinger Strasse was notarised for sale on the 23 October 2018 and is expected to complete in March 2019.
These disposals complete the sale of the remaining non-core assets in the portfolio. They take the number of sales by the Company this year to five, the others being another non-core asset in Bremen, a non-income producing piece of land and a vacant residential building, which together will generate proceeds of €21.1 million (€27.4 million when Bremen Dötlinger completes in March 2019).
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said:
“When the Bremen Dötlinger Strasse sale completes in March 2019, it will conclude the Company’s strategy to exit Bremen, allowing us to focus our sights on Germany’s “big seven” cities. The proceeds of both these sales will also provide additional capital to invest in the current portfolio and on new acquisitions.”