9th Nov 2021 08:45
(Alliance News) - Sirius Real Estate Ltd on Tuesday said it has completed the acquisition of Oberhausen business park in the Ruhr region of Germany for EUR39.8 million, around ZAR688.9 million.
The acquisition of the business park was part of a deal announced in August for the acquisition of four business parks in Germany for a total of EUR84.8 million. The other assets were located in Frankfurt, Heiligenhaus and Ohringen.
The acquisition was funded using Sirius Real Estate's EUR400 million bond which was completed in June, and will add 77,500 square metres of lettable office and industrial space to the company's 1.5 million square metre portfolio.
The property generates net operating income of EUR2.3 million per annum, with an average rent of EUR3.29 per square metre.
"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," said Chief Executive Officer Andrew Coombs.
Shares in Sirius Real Estate were up 2.1% at 135.40 pence on Tuesday in London, while its Johannesburg shares were 0.4% at ZAR27.08.
By Dayo Laniyan; [email protected]
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