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(Alliance News) - Sirius Real Estate Ltd on Tuesday said it has acquired a business park in Essen, Germany for EUR10.7 million, reflecting a net initial yield of 6.5%.
The Germany-focused business park operator said the transaction was conducted through a sale and leaseback with engineering and technology firm thyssenkrupp AG.
The property offers 14,711 square metres of gross lettable area, of which 45% is warehouse, 42% is office and the remaining 13% being production space. The park is currently let to six entities within thyssenkrupp, and produces total annualised rental income of EUR830,000.
The acquisition was funded through Sirius's existing cash resources, with completion expected in the second quarter of 2021.
"The business park we are acquiring at Essen offers a good mix of warehouse and office space, as well as great potential for Sirius to use our asset management capability and local expertise to add value, improve rental tone and explore development of part of the site. Essen is a city we know well and one we believe has strong long-term growth prospects," said Chief Executive Officer Andrew Coombs.
Shares in Sirius Real Estate were up 1.3% at 94.00 pence on Tuesday in London, while its Johannesburg shares were 1.2% higher at ZAR19.37.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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