1st Dec 2021 08:02
(Alliance News) - Sirius Real Estate Ltd announced on Wednesday it had acquired a high-quality business park southern Germany for EUR35 million or around ZAR626 million.
The deal, which will be settled in cash, will see Sirius take over business parks, industrial space, out of town office space and a land parcel across nine assets in Neckartenzlingen, south of Stuttgart.
The business park is currently 80% let to two tenants in the electronics and communications sectors, at an average rent of EUR3.84 per square metre. Sirius noted the asset produces a total annualised rental income of about EUR2.2 million.
Chief Executive Andrew Coombs said: "This is a well-located asset acquired at an attractive price point and underpinned by a long WALE, providing a stable income from day one. At the same time, it is in line with our usual strategy of acquiring assets where there is an opportunity for us to add value through our platform driven asset management initiatives, such as reducing vacancy, while also benefiting from potential redevelopment opportunities."
This acquisition comes shortly after the company entered the UK market this month with the acquisition of BizSpace, the provider of regional light industrial, workshop, studio and out of town office units to a wide range of businesses for GBP380 million.
Shares in Sirius Real Estate were down 0.3% in early trading in London on Wednesday morning at 136.00 pence each. In Johannesburg, shares were down 0.7% to ZAR28.51.
By Artwell Dlamini; [email protected]
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