Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has expanded its portfolio in Germany by acquiring two business parks in Köln and Göppingen for a total of €40 million (£34 million).
Funded by the proceeds from a €165 million capital raise conducted in November, the purchases add nearly 55,000 square metres of space, primarily for light industrial and production use, to Sirius's portfolio.
The Köln business park, located in Germany's fourth-largest city, was purchased for €20 million.
It encompasses 19,114 square metres of light industrial space, generating €1.67 million in rental income and €1.56 million in net operating income annually.
The site boasts an occupancy rate of over 89% and a gross yield of 8.4%.
In Göppingen, situated southeast of Stuttgart in southern Germany, Sirius secured a multi-tenanted park for €19.8 million.
This property offers 35,160 square metres of rentable space, producing €1.78 million in rental income and €1.47 million in net operating income each year.
The site has an 86% occupancy rate and a gross yield of 8.4%.
Both acquisitions are strategically located in established light industrial zones withstrong transport links.
The Köln and Göppingen sites are the company's fourth and tenth assets in their respective areas, enabling Sirius to capitalise on operational synergies and local market expertise.
Andrew Coombs, chief executive of Sirius Real Estate, commented: "These acquisitions provide the Company with strong day-one cash flow from a stable, diversified tenant base and align well with our strategy of curating a range of flexible out-of-town light industrial products that we expect to appeal to the local market.
“Acquired at attractive yields, these sites offer under-rented space and an opportunity to reduce vacancy and improve cash flow, providing a range of avenues for Sirius to leverage its UK and German operating platforms to generate significant value creation and to grow net operating income over the medium term.”