Sirius acquires another German business park
The Germany-focused company has said low financing costs boosted its prospects of acquisitions
Germany-focused business park owner Sirius Real Estate has acquired an office complex near Munich Airport for €20m (R323m) with it retaining its acquisitive stance amid low finance costs and strong demand from tenants.
The company owns or manages 60 business parks around Germany and its portfolio had a book value of €1.06bn at the end of its six months to end-September. This is an about 6% decline in the book value in the prior half-year.
During that period under review, it completed acquisition of three sites for €21.9m, with two more assets notarised for €64.6m, and a further three in exclusivity for €57.8m. The company said at the time it had further funds of about €80m for further acquisitions or other ventures.
The company said at the time investor interest in industrial and office parks in Germany is driving yields and valuations down, but added this was partially due to lower finance costs, which it said it was well-positioned to take advantage of.
“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,” CEO Andrew Coombs said on Monday.
“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.”
The share price of Sirius was up 0.4% to R15.18 in morning trade on Monday, bringing its year-to-date gain to 38.63%.