Sirius expands portfolio with €70m in German and UK acquisitions

Sirius Real Estate has completed the acquisition of a business park in Dresden, Germany, for €23.4 million (including acquisition costs) and Chalcroft Business Park in Southampton, U.K., for £38.6 million (including acquisition costs). Additionally, an adjoining 4.5-acre development site in Southampton was acquired for a further £4.2 million. The Dresden asset, Sirius' fourth in the area, was acquired at an EPRA net initial yield of 9.13% and currently generates a net operating income of €2.1 million. The Southampton business park yields an EPRA net initial yield of 5.5% and generates a net operating income of £2.1 million.

These acquisitions are expected to add €4.5 million of annualised income to Sirius' €2.7 billion portfolio. The Dresden acquisition was expedited by a one-year sale and leaseback agreement, with strong initial interest from prospective occupiers. The Southampton acquisition’s completion followed an increase in on-site power capacity. Sirius plans to leverage its asset management platform to grow revenues and unlock new income streams from these strategically located assets.

chief executive Andrew Coombs noted that with nearly €300 million in new investments secured this year, these transactions strengthen the company’s rent roll and are expected to deliver significant long-term value through development and repositioning. Sirius' strategy focuses on acquiring business parks at attractive yields and integrating them into its network.