Sirius acquires €93.4m defence-anchored business park in Kiel

Industrial park owner Sirius Real Estate is expanding its portfolio with the acquisition of a defence-focused business park in Kiel, Germany, for €93.4 mln.

Andrew Coombs

The property, located in Kiel, a significant German defence hub, spans 226,600 m2 and offers 78,170 m2 of production, warehouse, office, and laboratory space. It's almost fully occupied (98.5%) and generates €7.78 mln in annual rental income, with an 8.2% EPRA Net Initial Yield.

A key tenant is Rheinmetall, Germany's largest defence company, which conducts research and development for electrical systems for land vehicles on-site. Other tenants are also involved in defence, infrastructure, testing, and automation.

The acquisition also includes a 955 m2 development set to be completed in 2027, which will house an existing tenant specialising in systems automation and robotics integration under a new 10-year lease, further boosting the park's income.

Kiel's strategic location on Germany's Northern Coast, with direct access to the Baltic Sea, makes it a vital maritime industrial defence and transport hub for the German Navy and the commercial maritime industry.

This purchase strengthens Sirius's presence in the defence-related sectors, bringing its total investment in this sub-sector in Germany and the U.K. to over €200 mln in the last year. Previous acquisitions include a business park in Feldkirchen, Munich and one in Bedford, U.K.

Sirius continues to pursue further acquisitions in Germany and plans to release a trading update on 13 April 2026 to report on its growth.

Andrew Coombs, CEO of Sirius Real Estate, commented: "The acquisition of this multi-let business park delivers immediate income and offers further significant potential to improve rental tone, extend the WALE and drive further revenue growth through on-site development. This acquisition also adds to our broader portfolio of defence-related properties, further positioning the business to support the projected increase in government investment into defence and the resulting growth in occupier demand across the sector."