Sirius Real Estate This investment underscores a pivotal moment in the company’s expansion strategy, revealing its readiness to navigate and seize opportunities within the evolving industrial property landscape. Picture: Supplied
Image: Supplied
Sirius Real Estate, a prominent name in the ownership and management of branded business and industrial parks in Germany and the U.K., has officially sealed a deal to acquire a business park in Reinsberg, Saxony, for a substantial €20.4 million (R394.5 million).
This strategic move highlights the company's continuous growth trajectory in the industrial real estate sector.
This investment underscores a pivotal moment in the company’s expansion strategy, revealing its readiness to navigate and seize opportunities within the evolving industrial property landscape.
The Reinsberg business park, currently 75% occupied, boasts a long-term leasing agreement with the vendor, generating a robust annual rental income of €1.5m.
A quarter of the space remains vacant, providing Sirius with a valuable opportunity to enhance profitability through their adept management platform.
The acquisition reflects a 6% EPRA Net Initial Yield (NIY) after purchase costs, indicating a promising venture for the company.
Completed in 2014, the asset spans approximately 37 000 square metres of lettable space, with around 29 000 square metres (representing 78.4% of the total area) dedicated to high-quality industrial production. Its prime location near two major motorways amplifies its attractiveness to potential tenants.
Furthermore, the park's proximity to the Klipphausen business park, acquired by Sirius in February 2024, as well as another facility in Dresden, sets the stage for operational synergies and enhanced asset performance.
Andrew Coombs, CEO of Sirius Real Estate, elaborated on the strategic vision of the company, highlighting how they leverage their platform to collaborate with asset owners on partial sale and leaseback transactions.
"Our first acquisition of the year at Reinsberg follows our significantly oversubscribed €350 million bond issuance in January, and demonstrates both the strength of our pipeline and our ability to transact quickly,” Coombs said.
“The acquisition takes advantage of a situation where we can add income and also have an opportunity for significant value creation. The purchase shows how we are able to leverage our platform to work with asset owners on partial sale and leaseback transactions that help them better manage their balance sheets while providing us with opportunities to enhance our portfolio.”
With this acquisition, Sirius Real Estate is not only solidifying its foothold in the German market but also affirming its commitment to driving value and operational excellence in its holdings.
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