(Alliance News) - Sirius Real Estate Ltd on Monday said it has acquired an office complex in Hallbergmoos, Germany, near Munich Airport, for EUR20.2 million.
The commercial property investor said it already owns two business parks in the Munich area.
The office complex - which was bought from investment firm KCM Invest AG - will provide Sirius with a total of 19,600 square meters of net lettable space over three floors, together with 336 parking spaces.
The asset is 55% let to 28 tenants, producing an annual rental income of EUR960,000 at an average rate of EUR6.67 per square meter, Sirius noted.
"This asset fits well with our acquisition criteria, in particular the low capital value, the level of vacancy within the building and the low average rent compared to the local market," explained Chief Executive Andrew Coombs.
He added: "It offers a great opportunity to add significant value by playing to the strengths of our integrated business model and track record of maximising occupation and growing rental levels."
Sirius shares were trading 0.4% higher in Johannesburg on Monday morning at ZAR15.18 each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Sirius Real Estate (SRE)