Sirius Real Estate Acquires Two German Business Parks for €40m

14 Feb, 2024

Sirius Real Estate Acquires Two German Business Parks for €40m

Sirius Real Estate has made a significant investment of €40 million in acquiring two prominent business parks in Germany, with further discussions underway for potential acquisitions in the UK and Germany. The company, renowned for its ownership and management of branded business and industrial parks across Germany and the UK, has successfully added approximately 55,000 square meters of predominantly light industrial and production space to its extensive German portfolio, which currently spans 1.9 million square meters.

The acquisitions include a business park in Cologne, secured for €20 million, and another in Göppingen, acquired for €19.8 million. Andrew Coombs, CEO of Sirius Real Estate, highlighted the strategic significance of these acquisitions, emphasizing their immediate positive impact on the company's cash flow through a stable and diversified tenant base.

These acquisitions, obtained at attractive yields, present opportunities for Sirius Real Estate to optimize under-rented spaces, reduce vacancies, and enhance cash flow. Coombs underscored the company's commitment to leveraging its operational platforms in the UK and Germany to drive substantial value creation and bolster net operating income over the medium term.

With a robust acquisition pipeline and a cash position strengthened by a £147 million equity raise in November, Sirius Real Estate is well-positioned to capitalize on forthcoming opportunities. Coombs revealed that the company has already committed €78 million to legally binding acquisitions, €38 million of which has been finalized, with discussions underway for over €70 million worth of additional opportunities across Germany and the UK. The company anticipates deploying the remaining proceeds from the fundraise in the near future, signaling a period of sustained growth and expansion for Sirius Real Estate.