Sirius Real Estate plc (LON:SRE), the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany, announced today that it has completed the acquisition of Oberhausen Business Park for €39.8 million.
The acquisition has been made using the proceeds of the Company’s €400 million corporate bond issuance in June 2021 and will add a further 77,600 sqm of lettable office and industrial space to the Company’s 1.5 million sqm portfolio.
Oberhausen Business Park is located in a well-developed commercial area of the city of Oberhausen, in the northwest of Germany’s Ruhr region. The asset offers a mix of uses including around 47,400 sqm of out-of-town offices, 19,200 sqm of warehouse space, 4,600 sqm of storage and 6,400 sqm of other space.
The property generates NOI of €2.33 million per annum, with an average rent of €3.29 per sqm (excluding parking and other income), reflecting an EPRA Net Initial Yield of 5.9% at 63% occupancy. The asset has a remaining Weighted Average Lease Expiry (“WALE”) of 3.2 years.
The Company previously announced the notarisation of the asset on 18 August 2021.
Commenting on the acquisition, Andrew Coombs, Chief Executive Officer of Sirius Real Estate, 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.
“We are pleased to be making good progress on our pipeline of acquisitions, with a strong cash position following our €400m bond issuance in June, and we are in active discussions on a number of other promising opportunities in Germany.”