Sirius Real Estate has continued a busy start to the year, buying a 94,700 sq ft business park let to Daimler for €9.2m (£7.9m).
The deal for the site in Fellbach, near Stuttgart, represents an EPA net initial yield of 6%. The park is next to a site that Sirius bought in 2018, giving the company an enlarged asset with more than 387,000 sq ft of lettable space.
Daimler pays €730,000 per year as sole occupier. The company is set to move out of the park in the second half of the year.
Chief executive Andrew Coombs said the acquisition offered “compelling operational synergies and widens our range of asset management options particularly when considered alongside our existing adjacent Fellbach business park”.
He added: “With the major tenant moving out shortly after completion, our focus is on growing income through the capture of reversion and reduction in service charge leakage.”
Sirius has made several acquisitions already this year, including those on its own balance sheet and larger transactions struck in its joint venture with AXA .
In an interview with EG, Coombs said the company’s focus remained asset management opportunities. “This is not a model where we sit and wait for the market to be on our side,” he said. “We are very much about doing something to improve the income and lifting the values off the back of that.
“We believe that we should be starting with the tenant and the market, and the balance sheet becomes the consequence. What we see a lot of in property is people fixated with the balance sheet and often tending to overlook some of the other things that we use to drive the balance sheet.”
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
