Sirius Real Estate has acquired four business park assets and one land parcel for €84.8 million.
The acquisitions are located in Oberhausen, Frankfurt, Heiligenhaus and Öhringen and provide over 150,000 sqm of lettable space. In addition, the company has acquired a land parcel adjacent to its existing asset in Neuruppin.
”The properties have been acquired using proceeds of the company’s inaugural €400 million corporate bond issuance that completed in June 2021,” said the company in apress release.
Sirius said together the acquisitions generate day one net operating income (NOI) of €3.4 million per annum, representing a blended EPRA net initial yield of 4.1% at occupancy of 59%. ”With 62,000 sqm of vacant space, the assets provide an opportunity to grow income through the letting up of vacant space, accretive refurbishment and selective development.”
“With our strong cash position, Sirius continues to deliver on an attractive pipeline of opportunities generated by our in-house acquisitions team. The new assets provide a mix of warehouse, production, and office space that we know works well for our platform and our customers. The assets are in well-established locations that benefit from strong SME demand and growth potential, as well as synergies with existing Sirius business park sites,” said Andrew Coombs, Chief Executive Officer of Sirius Real Estate.
“Whilst the assets primarily represent an opportunity for the company to utilise its operating platform to drive the take up of lettable space and reduce service charge leakage, significant refurbishment and development opportunities also exist to provide further potential for value creation,” he added.
Oberhausen; The company has notarised the acquisition of Oberhausen Business Park for €39.8 million. The property generates NOI of €2.33 million per annum, with an average rent of €3.29 per sqm (excluding parking and other income), reflecting an EPRA Net Initial Yield of 5.9% at 63% occupancy. The asset has a remaining Weighted Average Lease Expiry (“WALE”) of 3.2 years. Completion is expected to be in Q4 of calendar year 2021.
Frankfurt III; The company has notarised the acquisition of its third asset in Frankfurt, for €21.2 million, representing an EPRA Net Initial Yield of 2.8% with occupancy at 54%.
The multi-tenanted office tower offers 15 floors of lettable space, comprising around 9,300 sqm of office and 900 sqm of storage space. The building generates NOI of €598,000 per annum at an average rent of €11.02 per sqm (excluding parking) and has a remaining WALE of 2.9 years. Completion is expected to be in Q4 of calendar year 2021.
Heiligenhaus; The company has notarised a multi-tenanted business park at Heiligenhaus, North Rhine-Westphalia, for €14.2 million.
The asset currently generates NOI of €1.12 million per annum, with an average rent of €2.44 per sqm (excluding parking and other income), representing an attractive EPRA Net Initial Yield of 7.9%. The asset is currently 77.2% let with a WALE of 3.7 years. Completion is expected to be in Q4 of calendar year 2021.
Öhringen; Öhringen Business Park was acquired for €9.02 million on 1 August 2021. Located in the town of Öhringen in Baden-Württemberg, the business park is well-connected by road and public transport. The asset offers a lettable area of approximately 18,000 sqm comprising around 15,800 sqm of warehouse space, 1,500 sqm of office space and 700 sqm of other space, as well as a potential development land parcel of around 11,600 sqm.
The business park has been acquired with vacant possession, but with a new lease already agreed with Filtration Group GmbH, an international filtration systems business, which currently occupies an adjacent property. Filtration Group will take up approximately 50% of the vacant space on an initial five-year term generating an annual rent of €490,000 and an NOI of around €224,000.
Neuruppin; The Company has also completed the notarisation of an approximately 16,000 sqm land parcel adjacent to its asset in Neuruppin for €0.5 million, to assist in its plans to expand and develop the existing property. Sirius is engaged in negotiations with the current tenant regarding the extension and a possible new lease for the additional developed space.