Sirius Real Estate Ltd on Tuesday said it will acquire a business park in Reinsberg, Germany, for a total of €20.4 million.
The London and Johannesburg-listed property investor said the Reinsberg park in Saxony is currently 75% occupied and generates an annual rental income of €1.5 million.
The remaining 25% vacancy ‘provides Sirius with an opportunity to add value by utilising its management platform to lease up the space, while having significant day one long term income’, the firm explained.
The majority of current occupants are under a 10-year full repairing and insuring lease to the vendor, Sirius added.
Chief Executive Officer Andrew Coombs said: ‘Our first acquisition of the year at Reinsberg follows our significantly oversubscribed €350 million bond issuance in January, and demonstrates both the strength of our pipeline and our ability to transact quickly.
‘The acquisition takes advantage of a situation where we can add income and also have an opportunity for significant value creation. The purchase shows how we are able to leverage our platform to work with asset owners on partial sale and leaseback transactions that help them better manage their balance sheets while providing us with opportunities to enhance our portfolio.’
The acquisition price will represent a 6% EPRA net initial yield after purchase costs.
Shares in Sirius Real Estate were down 0.2% at 77.60 pence in London on Tuesday morning. The stock was up 0.8% at R 18.24 in Johannesburg.
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