Sirius Real Estate expands portfolio with key German transactions

Sirius Real Estate (JSE:SRE) has announced it will be acquiring a multi-let business park in Lübeck, Germany, for EUR12.67 million, alongside the sale of a business park in Pfungstadt for EUR30 million. The Lübeck acquisition, representing a 7.9% EPRA Net Initial Yield, includes a 21,650 sqm property offering 14,810 sqm of lettable space, currently 88% let and generating a current rent roll of EUR1.05 million per annum. The Pfungstadt disposal, with a 9% premium to book value and representing an EPRA Net Initial Yield of 6.8%, allows Sirius to recycle capital from mature assets. The proceeds are aimed at reinvesting in more value-accretive opportunities. The transaction is expected to be completed in the final quarter of the current financial year.