Sirius Real Estate disposes of two German business parks for €43m

Sirius Real Estate has finalized two German property deals totaling €43 mln.

Sirius business park

The London-listed property company acquired a business park in Lübeck for €12.67 mln, expecting a 7.9% initial yield. Situated on a 21,650 m² plot, it offers 14,810 sqm of rentable space, primarily for production and warehousing. Currently 88% occupied, with an average lease term of 4.9 years, the park generates €1.05 mln in annual rent. A new lease will boost occupancy to over 95% and increase rent to €1.13 mln by August.
Located in Lübeck's main commercial district, the park benefits from excellent transport links, including proximity to a major autobahn that connects with Hamburg and Germany's largest Baltic seaport. Furthermore, a significant infrastructure project, including a tunnel to Denmark, will enhance Lübeck's connectivity and accessibility to northern European markets.
Separately, Sirius is selling a business park in Pfungstadt near Frankfurt for €30 mln, a 9% premium over its book value and a 6.8% initial yield. The 33,452 m² park is currently 89% occupied by over 100 tenants. Originally purchased in 2008 for €14.5 mln, this sale reflects Sirius's strategy of divesting mature assets to reinvest in properties with higher growth potential.
Andrew Coombs, CEO of Sirius Real Estate, commented: "These two transactions further progress our strategy of crystallising value from the sale of mature assets such as Pfungstadt and recycling capital into acquisitions where we have identified an opportunity to add value through our platform. Our strong balance sheet means we are well placed to continue to source and execute acquisitions from our pipeline at this opportune time in the market cycle."
Sirius owns a portfolio of 145 properties in Germany and the UK valued at €2.4 bn, leasing space to over 10,000 tenants, generating €214 mln in annual rent. The company’s strategy involves acquiring properties at favorable prices, upgrading them, and then selectively selling or refinancing mature assets to fund further acquisitions.