Germany-focused business park owner Sirius Real Estate has concluded transactions for three new assets worth a total of €26m (R464m), marking a return to acquisitive growth after a period of caution due to the Covid-19 pandemic.
The group, which owned 56 assets with a portfolio value of €1.2bn at the end of September, said on Monday it was benefiting from its knowledge of the German property market and a strong cash position.
The acquisitions comprise two previously announced acquisitions in Hamburg (€9.1m) and Nuremberg (€13.7m), as well as a new acquisition for €3.2m in Mannheim.
“These business parks are immediately accretive to earnings and signal a return to acquisitive growth for the company after holding back whilst assessing the impact of Covid-19 on the marketplace,” said CEO Andrew Coombs.
“As we enter the new year, we continue to benefit from a strong cash position and are focused on executing our healthy pipeline of further acquisitions,” Coombs said.
At the end of September, Sirius had €112.4m of unrestricted cash, saying its trading performance had been resilient in spite of Covid-19.
While the ultimate effect of the pandemic was uncertain, the response by the German government to support businesses and employment had been wide ranging, Sirius said in November.
By the close of trade on Monday, the group’s share was down 2.54% to R18.81, having risen about 13% over the past 12 months.
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