Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has completed the acquisition of a development site adjacent to its Munich-Neuaubing, Germany, business park for €13.3 million (£11 million).
The acquisition secures the final corner of a 130,000-square-metre estate in Munich. It was acquired at land value and offers strategic value-add and development opportunities.
While the new site currently generates a rent roll of approximately €740,000 per year, Sirius plans to reposition the tenant base to increase income in the short term while exploring longer-term development options.
The site benefits from a desirable location 10 miles from Munich city centre and one mile off the A99 motorway.
Andrew Coombs, chief executive of Sirius Real Estate, said: "This strategic acquisition offers significant operational synergies as well as the potential to unlock meaningful value when considered alongside our existing adjacent Munich-Neuaubing business park.
“With full ownership of this 32-acre estate in a highly desirable location we have identified attractive longer-term development opportunities to significantly enhance returns.
“In the meantime, we intend to put the Sirius platform to work immediately to maximise net operating income from the asset.”