Sirius Real Estate has sold an industrial park in Maintal, in Germany’s southwest Hesse region, for €40.1 million, representing a net initial yield (NIY) of 5.7%.
The Maintal disposal was achieved at approximately 6% above the last reported book value.
The company also, through its BizSpace subsidiary, has acquired a £33.5 million portfolio of three assets located in North London, from a closed ended fund.
The assets are based in busy suburban areas, with two in the Borough of Islington and one in the Borough of Camden. The three assets have a combined area of 103,962 sq ft of primarily multi-let studio workspaces and occupancy rate of just under 70%, which the Group views as providing significant potential for growth. The properties are let on flexible leases and have a WAULT of 3.1 years. The buildings are well maintained and have over 70 customers, the 10 largest of whom occupy over 50% of the occupied area.
The purchase price represents a NIY of 7.3% which through active asset management initiatives should generate a running yield in excess of 10% at maturity.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “The Maintal disposal at a premium to book value has allowed us to capitalise on demand for this high quality property. The sale of this mature asset at a 5.7% NIY, coupled with the completion of our acquisition of the properties in London at a 7.3% NIY with only a 70% occupancy, represents a good example of our strategy of recycling capital from mature assets into those where we believe we can grow income and value through our operating platform. In the current market we are focused on improving rental levels and providing tenants with the flexibility and services they need. We are increasingly seeing attractive acquisition opportunities across both Germany and the U.K. and will continue to pursue our asset recycling activities to support the long term growth of the Group.”
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