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 business park in Mönchengladbach represents an 8.5% initial net yield (NIY) and follows the recent successful disposal of Sirius’s Bizspace Tyszeley business park at a 6% premium to book value. “The acquisition of Mönchengladbach allows us to take ownership of an asset with enormous potential,” Sirius CEO Andrew Coombs said in a JSE note.

“It will provide day-one income and a longer-term opportunity to attract occupiersto the business park through asset management, with value-add opportunities from a close proximity to our portfolio in the region.”

Sirius has also exchanged contracts for the sale of Bizspace Cardiff site for £5.08m, representing a 10% premium to book value. The sales proceeds will assist with the average premium of 6.5% to book value, Coombs said.