It has been a busy start to the week for Germany-focused Sirius Real Estate Ltd (LSE:SRE, JSE:SRE), which on Tuesday announced it had completed the purchase of the Oberhausen Business Park for €39.8mln.
On Monday, Sirius unveiled the €287mln acquisition of flexible workspace specialist BizSpace backed by €117mln fundraise.
The latest transaction was financed from the company’s June corporate bond issue.
Based in the Ruhr region city of Oberhausen, the latest addition to the portfolio boasts 77,600 square metres of office facilities and 1.5mln square metres of industrial space.
It generated net operating income of €2.33mln a year at an average rent of €3.29 per square metre, generating a yield of 5.9% at 63% occupancy. The weighted average lease term is 3.2 years.
Sirius chief executive Andrew Coombs said: "Oberhausen is a good acquisition that provides the company with strong day one cash flow, and also the potential to grow income in the medium term by letting vacant space through targeted investment and refurbishment. This is where the Sirius platform excels.”