Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has notarised the €13.75 million (£11.73 million) acquisition of a German business park in Klipphausen, near Dresden, together with an adjacent land parcel.
Both are being funded from the proceeds of last November's €165 million capital raise.
The deal represents the third asset to be acquired by Sirius in Germany this calendar year, and the sixth asset to be acquired across both Germany and the UK in recent months.
Sirius acquired the site from a corporate owner-occupier that plans to vacate the building, which is expected to be six months after deal completion.
To allow a smooth departure from the property, Sirius has granted the vendor a six-month lease, which can be extended by two months at its option, in return for a rent of €200,000 per month.
Sirius plans to convert the site, which comprises approximately 17,700 square metres of modern primarily light industrial and production space, into a multi-tenanted business park.
An expansion of the park is planned through the development of the adjacent 10,000 sqm land parcel that forms part of the acquisition.
Multiple parties interested in leasing space at the site have already been identified, said Sirius.
The property is located in the town of Klipphausen, near Dresden, which is the capital of the Saxony state in Germany.
It sits within a highly desirable micro-location in the economically important ‘Silicon Saxony’, a registered industry association of nearly 300 SME businesses, and benefits from good transport networks and connectivity.
"This acquisition presents the company with a strong value-add opportunity to grow income and value through our operating platform,” said Andrew Coombs, chief executive of Sirius.
“We are encouraged that we already have multiple parties who have expressed leasing interest in the business park, representing in aggregate more than the entire space available.
“Additionally, the adjacent land parcel offers significant development potential in an area benefiting from extremely high occupier demand for light industrial, affordable assets in out-of-town locations.”
Sirius has now committed to over €90 million of acquisitions last November and is in advanced discussions on a further €60 million of additional opportunities.