GCISirius buys two German business parks for €40m
(Sharecast News) - Sirius Real Estate said on Monday that it has notarised the acquisition of two business parks, one in Köln (Cologne) and the other in Göppingen, for around €40m (£34m).
The company, which owns and operates branded business parks in Germany and the UK, said the acquisitions have been made using proceeds from November's £147m (€165m) capital raise.
Sirius said both business parks are situated in "highly desirable micro-locations" within well-established light industrial zones, and benefit from good transport networks and connectivity.
The Köln asset will be the fourth business park owned and operated by the company on the edge of Köln and the Göppingen site will be the tenth asset in the area surrounding Stuttgart.
Chief executive Andrew Coombs said: "These acquisitions provide the company with strong day one cash flow from a stable, diversified tenant base and align well with our strategy of curating a range of flexible out-of-town light industrial products that we expect to appeal to the local market.
""Acquired at attractive yields, these sites offer under-rented space and an opportunity to reduce vacancy and improve cashflow, providing a range of avenues for Sirius to leverage its UK and German operating platforms to generate significant value creation and to grow net operating income over the medium term."
Coombs said the company is in advanced talks with over €70m of additional opportunities across Germany and the UK and expects to deploy the remaining fundraise proceeds "in the coming months".
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