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 completed the previously announced acquisitions of a business park in Dresden, Germany, for €23.4 million (including acquisition costs), and of Chalcroft Business Park in Southampton, U.K., for £38.6 million (including acquisition costs), together with an adjoining 4.5 acre development site with outline planning permission, for a further £4.2 million (including acquisition costs).
The Dresden acquisition was completed on an expedited basis following notarisation in early August, facilitated by the vendor entering into a one-year sale and leaseback agreement. Sirius’ strategy to reposition the site as a multi-tenanted business park is already under way and has attracted strong initial interest from prospective occupiers. The asset, Sirius’ fourth in the Dresden area, currently generates a net operating income of €2.1 million and was acquired at an EPRA net initial yield of 9.13%.
Completion of the Chalcroft Business Park acquisition followed the fulfilment of a condition relating to increased on-site power capacity, supporting future expansion and development. Discussions are already under way with a prospective tenant regarding the build-out of the adjacent development land, which has the potential to deliver significant value creation. The business park currently generates a net operating income of £2.1 million and has been acquired at an EPRA net initial yield of 5.5%.
Both assets are located in highly desirable areas with strong transport connectivity. Southampton is a leading commercial and logistics hub on the South Coast, benefitting from excellent road, port, rail, and air links. Dresden continues to attract significant inward investment, notably the €10 billion semiconductor facility developed by Taiwan Semiconductor Manufacturing Company, which is driving strong tenant demand for Sirius’ portfolio in the region. The newly acquired site is expected to benefit from similar momentum.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “The completion of these two acquisitions immediately adds €4.5 million of annualised income to Sirius’ €2.7 billion portfolio in Germany and the U.K. More importantly, they provide attractive opportunities to leverage our platform to grow revenues and unlock new income streams through active asset management, enhancing yields while capitalising on the assets’ strategic locations where we already have an established presence. Both acquisitions are fully aligned with our strategy of developing a diversified mix of flexible out-of-town business and industrial space tailored to local market demand, while supporting Sirius’ broader sustainability objectives.
“With nearly €300 million of new investments secured so far this year, we are clearly demonstrating our ability to source and execute accretive transactions that strengthen our rent roll today and we expect will in the longer term deliver significant value for investors through development and repositioning initiatives.”
