Sirius Real Estate Ltd (LSE:SRE, JSE:SRE) has acquired an office and two business parks in Germany for around €45mln.
The operator of branded business and industrial parks said the properties, located in Frankfurt, Erfurt and Essen respectively, were funded from its €400mln oversubscribed corporate bond issue in June and will add 44,000 square metres (sqm) of office and industrial space to Sirius Real Estate’s 1.5mln sqm portfolio.
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The Frankfurt office, the company's third in Germany’s central financial hub, was acquired for €21.2mln. It has an occupancy ratio of 54% and an average rent of €11.02 per sqm.
The acquisition cost for the Essen property was €12.2mln. It comprises 11,709 sqm of lettable space and generates an annualised net operating income of €851,000, from an occupancy of 81%.
The Erfurt property is a 22,000 sqm multi-tenanted business park with development land and represents Sirius Real Estate's first investment into this key logistics location. The park, which was acquired for €11.7mln, comprises 14,000 sqm of industrial space, 7,400 sqm of office space and 760 sqm of other space. The site generates €623,000 of annualised net operating income at 81% occupancy.
Commenting on the acquisition, Sirius chief executive Andrew Coombs said: “These assets add to our existing operations in Essen and Frankfurt, whilst also growing our business into Erfurt, a key logistics location, as we continue to target strategic locations in Germany in order to generate sustainable returns on behalf of investors."
Shares fell 1.63% to 133.20p in early trade.