Sirius Real Estate acquires Mönchengladbach business park in Germany for R337.5 million

SIRIUS Real Estate, the London and JSE-listed owner of branded business and industrial parks in Germany and the UK, has acquired the Mönchengladbach business park for €17.2 million (R337.5m) and disposed of Bizspace Cardiff for £5.1m (R99.1m).

- EDWARD WEST

The acquisition of the multi-tenanted park in Mönchengladbach represents an 8.5% net initial yield (NIY) and follows the recent successful disposal of Sirius’s Bizspace Tysley business park at a 9.5% premium to book value. “The acquisition in Mönchengladbach allows us to take ownership of an asset with enormous potential,” Sirius CEO Andrew Coombs said in a statement.

“It will provide day-one income and a longer-term opportunity to attract occupiersto the business park through some management initiatives that are highly important to extract value from owner-occupier assets while many corporate operations in locations that are highly important to the community. We see significant potential for similar transaction in Germany,” Coombs said.