# Sirius Real Estate acquires €43.7m business park near Munich, expanding German portfolio

- Link: https://www.directorstalkinterviews.com/sirius-real-estate-acquires-e43-7m-business-park-near-munich-expanding-german-portfolio/4121221683
- Published: 2025-10-20T07:33:37+01:00
- Author: Amilia Stone

**Sirius Real Estate Limited** (LON:SRE), the leading owner and operator of branded
business and industrial parks providing conventional space and flexible workspace
in Germany and the U.K., has notarised the acquisition of a business park in Feldkirchen,
Germany, for €43.7 million (including acquisition costs).  

Located on the outskirts of Munich, Bavaria, the site has a gross lettable area 
of 27,180 sqm. The park is well connected with a nearby S-Bahn train station and
is a 20-minute drive from central Munich. It is also located less than a 10-minute
drive from Sirius’ Grasbrunn Business Park, providing operational synergies.

Feldkirchen business park currently generates €3.4 million of annualised rent roll
per annum and is 94% occupied with a 7.8 year weighted average unexpired lease term,
albeit there are several smaller tenants whose leases are shorter and offer potential
for upside from their current rental levels. The purchase terms reflect an EPRA 
Net Initial Yield of 7.8%.

The asset is anchored by Excelitas, a leading designer and manufacturer of high-
performance optical and photonic solutions for defence, aerospace, medical and industrial
applications, which occupies 72% of the park on a lease with 10.2 years to expiry.
Other tenants include OVOL Papier, a subsidiary of global paper conglomerate Japan
Pulp & Paper Group, the IWV Institut für Wirtschaftsmathematik and a subsidiary 
of Bosch.

Following this transaction, Sirius will have acquired around €340 million of income-
producing assets across the U.K. and Germany, so far in 2025. This has included 
properties in Dresden, Lübeck, Munich, Reinsberg, Monchengladbach, Hartlebury, Bedford,
Oldham and Chalcroft.

> **Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented:** _“
> In our first half trading update earlier this month we noted that we expected 
> our acquisition programme to be more weighted towards Germany in the last six 
> months of our financial year and this transaction underscores that sentiment. 
> Feldkirchen is an asset which benefits from strong existing fundamentals and offers
> future potential for our platform to exploit. Munich has the strongest economy
> of any German city and is one of Germany’s most resilient and sought after logistics
> hubs, being home to a strong and diverse range of industries spanning everything
> from manufacturing, finance, media and technology sectors.  _
> _We have identified a number of ways to improve the site and to asset manage the
> rental tone up over time, while Feldkirchen also offers operational synergies,
> being in close proximity to our existing asset at Grasbrunn. The acquisition also
> aligns with our strategic focus on positioning ourselves to benefit from increased
> defence spending, being anchored by a high quality manufacturing tenant that serves
> this sector.”   _

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