Sirius spends €45m on office and business parks

Sirius Real Estate has spent €45m (£38.2m) to add an office and two business parks to its portfolio of German business properties.

The company paid for the acquisitions with funds from its €400m corporate bond issue in June. The deals will add 44,000 sqm of mainly office and industrial space to Sirius's 1.5m sq m portfolio.

Sirius spent €21.2m in total acquisition costs to buy a 10,000 sq m offic in Frankfurt, Germany's main financial centre. Occupancy is 54% and Sirius said it could use its platform to bring in new tenants and increase income.

The other acquisitions are an office and production space in Essen for a total cost of €12.2m and a business park with development land in Erfurt for €11.7m.

Sirius now has three sites in Frankfurt and two in Essen after making its first investment there in May. The Erfurt purchase is Sirius's first in what it said was an important logistics location.

Sirius's chief executive, Andrew Coombs, said: "These three assets provide a strong mix of industrial, production, storage and out of town office space - with occupier demand for these types of assets remaining robust - while providing further potential to create value and grow income through asset management, improving sustainability and the letting of vacant space."

Coombs said Sirius had a strong cash position and was ready to make further acquisitions from an attractive pipeline of opportunities. Sirius shares fell 1% to 134p at 08:35 GMT.