Sirius completes business park and office building acquisitions

AIM-listed operator of branded business parks, Sirius Real Estate, has completed the acquisition of Krefeld Business Park and an office building in Dreieich for a combined total consideration of €7.5m.

In October last year, the group notarised the purchase of Krefeld Business Park for €2.9m, representing a 13.1% EPRA net initial yield.

The single-let business park totals 6,335 square metres of office and warehouse space and currently the site is producing annualised income of €0.4m. The tenant will be conducting a staged exit over the next 14 months, creating an opportunity to re-let the site at a higher rate over a longer term.

In November 2016, Sirius notarised the purchase of an office building located in Dreieich for €4.6m. The site contains significant under-utilised and vacant space which the company said represents an excellent development opportunity. It is being acquired on a 0.9% EPRA net initial yield.

As previously announced, Sirius is in the process of moving to the main markets of the London Stock Exchange and the Johannesburg Stock Exchange. Due to the earlier than expected completion of these deals, the publication of the prospectus will be slightly later than previously announced. This delay is not expected to impact the admission date of 6 March 2017.

Chief executive officer Andrew Coombs said: "We moved quickly to complete these two opportunistic acquisitions which we have bought without bank financing and now have the opportunity to significantly increase the rental income from them both. We are also continuing to make good progress elsewhere on our acquisition and disposal programme and remain on track to move up to the main markets of the LSE and JSE."