Sirius acquires Munich development site for €13.3m
The site is immediately adjacent to its Munich-Neuaubing business park
17 December 2024 - 10:09
by Jacqueline Mackenzie
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Sirius Real Estate-owned storage asset Heiligenhaus in Germany. Picture: SUPPLIED
Sirius Real Estate has completed the acquisition of a development site in Munich, immediately adjacent to its Munich-Neuaubing business park, for €13.3m.
Sirius, which owns and operates branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, said the site had been acquired at its land value.
“This strategic acquisition offers significant operational synergies as well as the potential to unlock meaningful value when considered alongside our existing adjacent Munich-Neuaubing business park,” said CEO Andrew Coombes.
The acquisition allows the company to secure the final corner of a well-located 130,000m2 estate in the Bavarian capital, presenting it with a number of value-add and development options in the future.
Sirius has already been exploring potential alternative development opportunities at the Munich-Neuaubing site, which lies in a largely residential area, and this acquisition will enhance the optionality available, it said in a statement on Tuesday.
The new asset being acquired comes with day one rent roll of about €740,000 a year and the company envisions repositioning the tenant base to maximise this income in the short term while exploring development plans.
The site benefits from a highly desirable micro location, about 16km from Munich city centre and 1.6km off the A99 motorway, providing excellent connectivity.
“With full ownership of this 32-acre (13ha) estate in a highly desirable location we have identified attractive longer term development opportunities to significantly enhance returns,” said Coombes.
“In the meantime, we intend to put the Sirius platform to work immediately to maximise net operating income from the asset. We continue to make good progress on our acquisition pipeline through strategic acquisitions across the UK and Germany,” he added.
In November the group reported a 14.5% increase in funds from operations while it has made acquisitions worth €141.5m in the six months to end-September.
Sirius is well-positioned to capitalise on accretive acquisition opportunities with its strong balance sheet and extensive operational platform, the group said.
Since April 1, the group has made investments at attractive net initial yields across Germany and the UK, with a €90.1m spend in the UK and €36m in Germany.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sirius acquires Munich development site for €13.3m
The site is immediately adjacent to its Munich-Neuaubing business park
Sirius Real Estate has completed the acquisition of a development site in Munich, immediately adjacent to its Munich-Neuaubing business park, for €13.3m.
Sirius, which owns and operates branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, said the site had been acquired at its land value.
“This strategic acquisition offers significant operational synergies as well as the potential to unlock meaningful value when considered alongside our existing adjacent Munich-Neuaubing business park,” said CEO Andrew Coombes.
The acquisition allows the company to secure the final corner of a well-located 130,000m2 estate in the Bavarian capital, presenting it with a number of value-add and development options in the future.
Sirius has already been exploring potential alternative development opportunities at the Munich-Neuaubing site, which lies in a largely residential area, and this acquisition will enhance the optionality available, it said in a statement on Tuesday.
The new asset being acquired comes with day one rent roll of about €740,000 a year and the company envisions repositioning the tenant base to maximise this income in the short term while exploring development plans.
The site benefits from a highly desirable micro location, about 16km from Munich city centre and 1.6km off the A99 motorway, providing excellent connectivity.
“With full ownership of this 32-acre (13ha) estate in a highly desirable location we have identified attractive longer term development opportunities to significantly enhance returns,” said Coombes.
“In the meantime, we intend to put the Sirius platform to work immediately to maximise net operating income from the asset. We continue to make good progress on our acquisition pipeline through strategic acquisitions across the UK and Germany,” he added.
In November the group reported a 14.5% increase in funds from operations while it has made acquisitions worth €141.5m in the six months to end-September.
Sirius is well-positioned to capitalise on accretive acquisition opportunities with its strong balance sheet and extensive operational platform, the group said.
Since April 1, the group has made investments at attractive net initial yields across Germany and the UK, with a €90.1m spend in the UK and €36m in Germany.
With Noxolo Majavu
MackenzieJ@arena.africa
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