Sirius Real Estate snaps up business complex for €20.2m
Sirius Real Estate on Monday acquired a 19,600 square metre office complex in Hallbergmoos, near Munich Airport, for €20.2m, using funds from five recent disposals.
The German-focused branded business park operator said its new park is currently 55% let, with the purchase price reflecting an EPRA net initial yield of 3.4% due to the partial vacancy of the three-storey building.
The site, located near two other parks owned by the FTSE 250 company, generates an annual rental income of €960,000 at an average rate of €6.67 per square metre, with a remaining weighted average lease term of 2.4 years.
Chief executive Andrew Coombs said: "This asset fits well with our acquisition criteria, in particular the low capital value, the level of vacancy within the building and the low average rent compared to the local market. It offers a great opportunity to add significant value by playing to the strengths of our integrated business model and track record of maximising occupation and growing rental levels."