Sirius Real Estate expands in Germany, divests Cardiff asset

Sirius Real Estate (JSE:SREE) has announced the acquisition of a multi-tenanted business park in Mönchengladbach, Germany, for €17.21 million, representing an 8.21% Net Initial Yield (NIY). The 124,599 sqm park, currently 66% occupied, includes a sale and partial leaseback agreement with SMS group, a major tenant. Concurrently, Sirius has exchanged contracts to sell its BizSpace Cardiff site for £5.075 million, a 10% premium to book value. Proceeds from the Cardiff sale will be reinvested into properties with greater value-add opportunities. With this acquisition, Sirius has deployed €118 million of the €181 million raised in July 2024, generating €8.5 million in net operating income. The company still has €100 million debt funding capacity.