Sirius Real Estate has acquired a light industrial property in Geilenkirchen, Germany, for 鈧�12.9m.

The asset was acquired in a sale-and-leaseback transaction with a precision engineering business that has signed up for a triple net lease on the entire property.  The acquisition reflects a net initial yield of 9.3%.

The property is in a strategic location in Geilenkirchen, west of D眉sseldorf, in close proximity to the Belgian and Dutch borders. Geilenkirchen is also home to a key NATO airbase, further contributing to the area鈥檚 economic stability.

Sirius said the acquisition is in line with its strategy of acquiring well-located assets with secure income streams and value-add potential, at attractive yields.

Andrew Coombs, CEO of Sirius, said: 鈥淭his acquisition provides us with a well-located asset at an attractive yield and further strengthens our footprint in the Euregio Maas-Rhine industrial region. With Geilenkirchen being home to a key NATO airbase, it is also in line with our ambition of ensuring that Sirius鈥檚 portfolio is well placed to benefit from an increased focus on defence investment, particularly following the news earlier this week that Germany鈥檚 defence spending is now heading towards a new target of 5% of GDP. 

鈥淔ollowing on from the Reinsberg and Monchengladbach acquisitions announced earlier this year, this acquisition presented Sirius with another sale-and-leaseback opportunity in a strong location at an attractive yield. The purchase helps another business owner to extract value from its property assets while maintaining operations on site, while delivering strong income returns for the company.鈥�

UK disposal

As part of its ongoing UK portfolio optimisation strategy, Sirius has also exchanged contracts for the disposal of a small non-core asset in Huddersfield to a private individual for 拢1.55m (鈧�1.8m). The transaction was concluded at a 7% premium to the asset鈥檚 most recent book value and reflects a disposal yield of 8.1%, assuming standard purchaser costs, Sirius said.

The company added that proceeds from the sale will be redeployed into opportunities within its portfolio, in line with its capital allocation strategy.

To read the latest 91传媒在线 magazine click here.

Topics