Sirius Real Estate acquires German business park

Branded business parks operator Sirius Real Estate has completed its acquisition of Alzenau business park near Frankfurt am Main on Tuesday.

Sirius snapped up Alzenau for a total consideration of €44.5m, including acquisition costs of €2.5m, on an EPRA net initial yield of 7.9%.

The AIM-listed group said the acquisition would initially be funded using proceeds from recent asset recycling activity and added that it would be injected into an existing facility in the near future.

The business park was made up of 11 buildings constructed between 1985 and 2002 - providing a total of around 60,000 square metres of lettable space and 1,063 parking spaces.

The asset was 93.5% let to 16 tenants with an annual total income of €4.1m and annual net operating income of €3.5m as aof July 2019.

Chief executive Andrew Coombs said: "This asset provides an attractive running yield, which will support our strategy to grow our funds from operations.

"Furthermore, there is a good mix of long-standing tenants with strong covenants."

As of 1330 GMT, Sirius shares were down 0.12% at 83.40p.