Sirius acquires buisiness parks in Germany
The acquisition in Frankfurt, Germany’s main financial hub, is the Company’s third in the city.
Sirius Real Estate, has completed the acquisition of an office and two business parks in Frankfurt, Erfurt and Essen, respectively, in separate transactions.
The acquisitions have been made using the proceeds of the Company’s €400 million oversubscribed corporate bond issuance in June 2021 and will add a further 44.000 sqm of primarily office and industrial space to the Company’s 1.5 million sqm portfolio.
The acquisition in Frankfurt, Germany’s main financial hub, is the Company’s third in the city and comprises a multi-tenanted office with a total lettable area of approximately 10,000 sqm.
The property has been purchased for total acquisition costs of €21.2 million and generates an annualised net operating income of €598,000. With occupancy at 54% and an average rent of €11.02 per sqm (excluding parking and other income) with a WAULT (Weighted Average Unexpired Lease Term) of 2.9 years, the property offers the opportunity for Sirius to use its platform to improve occupancy and income.
The property benefits from its location close to two of the city's main autobahns and aligns to the Company's strategy of providing a range of flexible out of town office products that it expects to appeal to the local market.