Sirius Real Estate Sirius Real Estate, JSE-listed owner of industrial parks in Germany and the UK, has purchased a defence-supported business park in Fulda, located in the Hesse region of Germany, for €49.8 million, as part of Sirius' plans to increase its exposure to the defence sector which is growing in Europe.
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JSE-listed Sirius Real Estate, a prominent player in branded business and industrial parks in the UK and Germany, has completed a significant acquisition by notarising the purchase of a defence-supported business park in Fulda, located in the Hesse region of Germany, for €49.8 million.
This deal reinforces the company’s commitment to expanding its portfolio within the light-industrial sector, while capitalising on long-term demand drivers.
The Fulda site, spanning 112,867 square metres, comprises 57,771 square metres of lettable space that is currently fully occupied.
The business park is generating an impressive annual rental income of €3.93m, underpinned by a weighted average lease expiry of 5.1 years, and reflects a robust net initial yield of 7.8%.
This solid financial performance highlights the strategic value of the acquisition in a market characterised by growth in defence-related investments.
At the heart of the business park's operations is the European manufacturer of ballistic protection equipment, servicing military and law enforcement sectors. This tenant contributes a significant 78% to the site’s rent roll, and has expressed a willingness to expand its operations, indicating a transition towards a predominantly single-tenant asset.
Should these plans materialise, annual rental income could soar to approximately €4m, the company said Thursday.
Andrew Coombs, Sirius' CEO said: "This acquisition represents another attractive opportunity to deploy capital into a high-yielding industrial asset with strong existing income and clear potential for further growth. The property is anchored by a high-quality manufacturing tenant operating in the defence sector, which aligns with our strategy of increasing exposure to areas supported by long-term structural demand."
Germany's Hesse region is an economic powerhouse, boasting the highest GDP per capita among German states. Fulda's location is about 100 kilometres from Frankfurt and is directly connected to Europe's longest motorway, the A7 Autobahn.
Coombs sad this acquisition not only increases Sirius’ exposure to defence assets — bringing its total recently acquired defence portfolio to over €200m at a blended gross yield of around 8.9% — it also positions the company for sustainable income growth amid a backdrop of escalating defence and security spending in Germany and across Europe.
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