Sirius Real Estate, which operates branded business parks that provide conventional and flexible workspace in Germany, said on Thursday that it had made €18m worth of disposals of mature assets and €66.4m worth of property acquisitions in the past six weeks.
Sirius is the only German property player listed in SA with assets in Bonn, Munich, Dresden, Bremen, Kiel, Hanover, Mainz and Wiesbaden, among other places.
"This has been an active six weeks for Sirius during which we have notarised a further €43.5m of acquisitions and completed [a] Cologne acquisition for €22.9m. The three recently notarised sites are currently under-utilised and under-occupied, however, all are situated in good locations for our customer base," said CEO Andrew Coombs.
"Our focus will be on re-branding, re-configuring and introducing specialist small- and medium-sized enterprise workspaces and storage products to match demand in each local area."
Sirius notarised the sale of a mature asset, a mixed-use business park, in Kiel for €7m, in line with book value and representing a net initial yield of 7.4%, including acquisition costs. Since its acquisition in 2007 at less than half of the disposal price, Sirius’s asset management activity has increased net operating income from a small loss to €0.56m and increased the occupancy from 19% to 92% over a net lettable area of 10,000m².
The group completed the sale of a mature asset located in Dusseldorf for €11m, representing net initial yield of 7.2%, including acquisition costs. Since this site was acquired in 2008, Sirius’s asset management activity has significantly improved the tenant mix and lease terms, said Coombs.
The sale is at a 25% premium to the site’s book value of €8.7m as at September 30 2016. The asset is a mixed-use business park generating €0.85m of net operating income with occupancy of 96% over a net lettable area of 16,600m².
Sirius acquired a property in Grasbrunn, an area on Munich’s ring road. "The property is located in a well-developed commercial area and is being purchased for a total consideration of €18.1m. The property comprises four office buildings and has a net lettable area of 14,791m². Currently the property is nearly fully vacant with an annual rental income of €0.10m," said Sirius.
Sirius also acquired an asset in Neuss for a total consideration of €15.8m. Neuss is an active commercial centre, located on the west bank of the Rhine opposite Düsseldorf.
It acquired a property located in Neu-Isenburg for a total consideration of €9.7m. "Situated close to Frankfurt, Neu-Isenburg benefits from excellent transport links and will combine well with the nearby Sirius site in Dreieich," said Sirius.
They bought an asset in Cologne for a total consideration of €22.9m. Chris Segar of Ivy Asset Management said Sirius had an ability to implement capex programmes successfully in the business parks they are invested in, and also to recycle mature properties.