October 20 2025 18:40
Sirius Real Estate, the JSE and LSE listed owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, said it had notarised the acquisition of a business park in Feldkirchen, Germany, for €43.7m (R879m), (including acquisition costs).
Located on the outskirts of Munich, Bavaria, the site has a gross lettable area of 27,180 square metres. The park is located near an S-Bahn train station and is a 20-minute drive from central Munich. It is also located less than a 10-minute drive from Sirius’ Grasbrunn Business Park, providing operational synergies.
Feldkirchen business park generates €3.4m of annualised rent roll per annum and is 94% occupied with a 7.8 year weighted average unexpired lease term, and there are several smaller tenants whose leases are shorter and offer potential for upside from their current rental levels. The purchase terms reflect an EPRA Net Initial Yield of 7.8%.
The asset is anchored by Excelitas, a designer and manufacturer of high-performance optical and photonic solutions for defence, aerospace, medical and industrial applications, which occupies 72% of the park on a lease with 10.2 years to expiry. Other tenants include OVOL Papier, a subsidiary of global paper conglomerate Japan Pulp & Paper Group, the IWV Institut für Wirtschaftsmathematik and a subsidiary of Bosch.
Following this transaction, Sirius will have acquired some €340m of income-producing assets across the UK and Germany, so far in 2025. This has included properties in Dresden, Lübeck, Munich, Reinsberg, Monchengladbach, Hartlebury, Bedford, Oldham and Chalcroft.
“In our first half trading update earlier this month we noted that we expected our acquisition programme to be more weighted towards Germany in the last six months of our financial year and this transaction underscores that sentiment. Feldkirchen is an asset which benefits from strong existing fundamentals and offers future potential for our platform to exploit. Munich has the strongest economy of any German city and is one of Germany’s most resilient and sought after logistics hubs, being home to a strong and diverse range of industries spanning everything from manufacturing, finance, media and technology sectors,” Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said.
Coombs said Sirius identified ways to improve the site and to asset manage the rental tone up over time, while Feldkirchen also offers operational synergies, being in close proximity to the fund’s existing asset at Grasbrunn.
“The acquisition also aligns with our strategic focus on positioning ourselves to benefit from increased defence spending, being anchored by a high quality manufacturing tenant that serves this sector,” he said.
alistair@propertyflash.co.za
