Sirius Real Estate to buy Nuremberg business park for €13.7m
Sirius Real Estate has agreed to buy a multi-tenanted business park in Nuremberg for €13.7m (£12.3m).
The company, which operates branded business and industrial parks in Germany, said the price reflects an EPRA net initial yield of 7.1%. Completion of the acquisition is expected in January next year.
Sirius said on Monday that it’s buying the asset from a manufacturer of component parts for the European motorcycle and scooter market. Built in 1993, the business part has 13,600 sqm of gross lettable area and primarily comprises manufacturing space, as well as office, warehouse/logistics, and other uses.
The business park is currently 91% let to a mix of SME tenants at an average rent of €7.36 per sqm, with weighted average lease length of four years. It produces a total annualised rental income of around €1.1m.
Chief executive officer Andrew Coombs said: "This is a well-located asset acquired on an attractive yield, where we see potential to add value through our asset management initiatives. Nuremberg has a strong and diverse SME sector of which Sirius has good knowledge having owned an asset in the city for over 10 years.
"We continue to have significant resources to execute our strong pipeline of future acquisition opportunities around Germany's key cities, for both our own portfolio and our Titanium joint venture."