Sirius acquires two properties in Germany
Sirius Real Estate announced the completion of the acquisition of two properties for a combined total acquisition cost of €24.5m.
On 1 July 2017, the group completed the acquisition of Berlin-Mahlsdorf II. The property is a mixed used building, in a commercial area 15 km east of the centre of Berlin and adjacent to an existing Sirius site in Berlin-Mahlsdorf. The site offers 12,826 square metres of gross lettable space, of which 68% is office space, 18% is retail space and 14% is warehouse space. The building is currently 62.2% occupied, is let to 19 tenants producing an annual income of €0.5 million and has a remaining weighted average lease term of 6.1 years. The demand and take-up of the vacancy in Sirius’s adjacent site has been high and the site is quickly approaching full occupancy, which is encouraging for the prospects of the new site. The property was acquired for €6.4m including acquisition costs.
Also, on 1 July 2017, the group completed the acquisition of Grasbrunn. The site is located in a well-developed commercial area close to Munich and comprises four office buildings with a gross lettable area of 14,791 square metres. Currently the property is only 3.5% occupied (let to one tenant), producing an annual income of €0.1 million with a remaining lease term of 1.7 years. This acquisition provides Sirius with an excellent opportunity to increase the value of the asset through investing into and letting up the vacant space for which the Group’s marketing team has already registered significant tenant interest. The property was acquired for €18.1m including acquisition costs.
Andrew Coombs CEO of Sirius Real Estate, said, “It is pleasing to be able to recycle the equity released from our recent disposals into these two excellent assets with such strong future potential. Each site is well located and provides scope for us to increase passing rents and capital values. We have excellent understanding of both local markets and know the types of space that will appeal there. We look forward to incorporating these into the group’s portfolio.”