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Sirius Real Estate buys Stuttgart business park for €34.5m

By Michele Maatouk

Date: Wednesday 01 Dec 2021

Sirius Real Estate buys Stuttgart business park for €34.5m

(Sharecast News) - Sirius Real Estate, which owns and operates branded business and industrial parks in Germany and the UK, has completed the acquisition of a business park in Neckartenzlingen in Stuttgart for €34.5m.
The transaction reflects an EPRA net initial yield of 5.6%.

The Neckartenzlingen business park asset comprises three mixed-use buildings, which Sirius is acquiring from two separate vendors, Hirschmann Electronics and Logwin Holding Immo Aschaffenburg. Built between 1955 and 1991 and previously held as one combined asset, the property has 54,515 sqm of gross lettable area and primarily comprises production space, warehouse space and out of town offices.

The business park is currently 80% let to two tenants in the electronics and communications sectors, at an average rent of €3.84 per square metre. It produces a total annualised rental income of around €2.2m.

Chief executive officer Andrew Coombs said: "This is a well-located asset acquired at an attractive price point and underpinned by a long WALE (weighted average lease expiry), providing a stable income from day one.

"At the same time, it is in line with our usual strategy of acquiring assets where there is an opportunity for us to add value through our platform driven asset management initiatives, such as reducing vacancy, while also benefiting from potential redevelopment opportunities."

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