Sirius Real Estate acquires business parks in Dresden and Southampton

Sirius Real Estate has acquired a business park in Dresden, Germany, for €23.4 mln and Chalcroft Business Park in Southampton, U.K., for £38.6 mln (€45.2 mln).

Chalcroft Business Park

Additionally, it has also purchased an adjacent 1.8-hectare development site for an additional £4.2 mln (€4.9 mln).
The Dresden acquisition was fast-tracked, aided by a one-year sale and leaseback agreement with the vendor. Sirius intends to convert the site into a multi-tenanted business park, which has already garnered considerable interest. This asset, Sirius's fourth in Dresden, currently produces a net operating income of €2.1 mln and was acquired with an EPRA net initial yield of 9.13%.
The Chalcroft Business Park acquisition was completed after an increase in on-site power capacity, facilitating future expansion. Discussions are ongoing with a potential tenant for developing the adjacent land, which could significantly increase its value. The business park currently generates a net operating income of £2.1 mln (€2.5 mln) and was acquired at an EPRA net initial yield of 5.5%.
Both properties are strategically located with excellent transport links. Southampton is a key commercial and logistics centre on the South Coast, while Dresden is attracting substantial investment, boosting tenant demand for Sirius' properties in the region.
Andrew Coombs, CEO of Sirius Real Estate, commented: "The completion of these two acquisitions immediately adds €4.5 mln of annualized income to Sirius' €2.7 bn 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 capitalizing 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."
Sirius Real Estate has secured nearly €300 mln of new investments so far this year.