Sirius Real Estate Expands Portfolio with €40 Million Acquisition of Two Business Parks in Germany

  • Sirius Real Estate expands portfolio with €40 million acquisition of two business parks in Germany, funded by capital raise.
  • Acquisitions strategically position Sirius in desirable micro-locations with strong cash flow and growth potential.
  • CEO highlights alignment with company strategy, promising pipeline, and advanced discussions for further expansion opportunities.
By Lethabo Ntsoane

Sirius Real Estate Limited (JSE Share Code: SRE) has announced the acquisition of two business parks in Germany for a total of €40 million (£34 million).

Acquisition Details:

The acquisition, funded by the proceeds of November’s £147 million (€165 million) capital raise, marks Sirius Real Estate’s strategic expansion into the German market. The two business parks, located in Köln (Cologne) and Göppingen, bolster Sirius’ presence in the region, adding just under 55,000 square meters of primarily light industrial and production space to its already extensive portfolio.

PropertyLocationAcquisition Cost (€)Total Rental Income (€)Annualized NOI (€)Gross Yield (%)EPRA Net Initial Yield (%)Occupancy Rate (%)WAULT (Years)
Köln Business ParkKöln20.0 million1.67 million1.56 million8.47.3892.4
Göppingen Business ParkGöppingen19.8 million1.78 million1.47 million9.06.9862.8

Strategic Benefits:

The acquisitions strategically position Sirius Real Estate in highly desirable micro-locations within established light industrial zones. Both properties benefit from excellent transport networks and connectivity, making them attractive assets for the company’s portfolio expansion.

Conclusion

Sirius Real Estate’s acquisition of two business parks in Germany reflects its commitment to strategic growth and diversification. With a strong financial position and a focus on value creation, the company is well-positioned to capitalize on opportunities in the dynamic real estate market.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: lethabo@rateweb.co.za Twitter: @NtsoaneLethabo