# Sirius Real Estate acquires two business parks for total of €33.4 million

- Link: https://www.directorstalkinterviews.com/sirius-real-estate-acquires-two-business-parks-for-total-of-e33-4-million/412801883
- Published: 2020-01-06T07:33:38+00:00
- Author: Giles Arbor

**Sirius Real Estate** (LON: SRE), the leading operator of branded business parks
providing conventional space and flexible workspace in Germany, has announced that
it has completed the acquisitions of Neuss II, a business park near Düsseldorf, 
and Neuruppin Business Park, in the Brandenburg region, for a combined total of 
€33.4 million (including acquisition costs), reflecting an aggregate EPRA net initial
yield of 6.8%.

**Neuss II**

Originally constructed in 1987 and since expanded, Neuss ll provides a total of 
34,000 sqm of net lettable space (21,900 sqm of warehouse/production, 11,700 sqm
of office and 400 sqm of other space), together with 371 parking spaces, on a total
plot size of 58,800 sqm. The property is located on Fuggerstrasse in Neuss, 9.5 
km south of Düsseldorf city centre. Sirius already owns an 18,000 sqm office building
in Neuss and two other business parks in Düsseldorf.

The asset is 81.5% let to sixteen tenants, producing an annual rental income of 
€1.3 million, reflecting an average rate of €3.84 per sqm, and has a remaining WALT
of 4.4 years. Tenants include Max Mothes GmbH, global specialists in the production
and logistics of high-performance connecting technology, Steep GmbH, DINAX GmbH 
and FEAG GmbH, service providers in power generation and distribution.

The property has been acquired from a regional family real estate office for €19.1
million (including acquisition costs), reflecting an EPRA net initial yield of 5.4%.

**Neuruppin**

Originally constructed in 1992 and since expanded, Neuruppin Business Park, provides
22,400 sqm of net lettable space (12,600 sqm of production space, 7,200 sqm of warehouse
space and 2,600 sqm of offices), together with 169 parking spaces on a total plot
size of 108,200 sqm. The property is located 4.3 km south of Neuruppin city centre,
75 km north west of Berlin. Neuruppin is likely to benefit from a €1.4 billion road
infrastructure expansion project on the main highway between Berlin and Hamburg,
anticipated to complete in 2022.

The asset is 100% let to a single tenant, ESE GmbH, Europe’s leading manufacturer
of temporary storage systems for waste and recyclables, on a lease with 5.5 years
to run, at a current annual rent of €1.3 million, reflecting a rate € 4.97 per sqm.
The property has been acquired from Otto Immobilien GmbH & Co. KG for €14.3 million(
including acquisition costs), reflecting an EPRA net initial yield of 8.6%.

The Company has now completed €98 million of the €170 million in acquisition capability
that was set out in its Interim Results announced on 25 November 2019. These acquisitions
provide a total of 136,000 sqm lettable area, with 14% vacancy, producing a current
annual rent of €7.7 million, reflecting a blended EPRA net initial yield of 6.5%.
Additionally, Sirius is reviewing a number of potential acquisitions for investment
of its remaining designated acquisitions capital.

> **Commenting on these acquisitions, Andrew Coombs, Chief Executive Officer of 
> Sirius Real Estate, said:** “The last month has been particularly successful on
> the acquisitions front providing us with some great assets which have good value
> add potential that can be realised next year and beyond.
> “Neuss ll fits well with our strategy of buying assets at low capital values, 
> with low average rents compared to the local market and located around key German
> cities. It offers us a good opportunity to add significant value by playing to
> the strengths of our integrated business model and track record of maximising 
> occupation and growing rental levels.
> “The Neuruppin property, which is 100% let to a tenant with a strong covenant 
> with a WALE of 5.5 years and an EPRA net initial yield of 8.6%, is a very good
> acquisition, particularly when you take into account the tenant’s potential plans
> to expand in the area as well as the further opportunity to develop vacant parcels
> of land within the site.”

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