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14 Mar 2019 | 08:51

Sirius Real Estate completes €25.7m business park acquisition in Germany's Bochum

Real estate holding company Sirius Real Estate said on Thursday it had completed the acquisition of a 56,000 sqm mixed-use business park in Bochum, Germany for €25.7m.

The total consideration equated to an EPRA net initial yield of 8.9%.

The purchase price was funded using capital from the placing in March 2018 and part of a €56m five-year debt facility with an interest rate of 1.4%.

The company said the business park consists of approximately 56,000 sqm of mixed-use lettable space of which 65% is warehouse, 29% is office and 6% is other space and would initially generate €2.6m of gross rental income with 95% occupancy.

"This acquisition is our first foothold in the important Ruhr area which is one the major industrial regions of Germany. With relatively low site density, a flexible multi-tenant structure, the opportunity to replace the exiting major tenant [Pilkington] and stabilise the rent roll in an area where take-up is robust and rents are growing, this site is an exciting value-add opportunity for Sirius," said Andrew Coombs, Chief Executive Officer of Sirius Real Estate.

"We have already generated strong interest in this park and believe re-letting of the balance of the Pilkington space will be achieved ahead of business plan," he added.

At 8:51am: (LON:SRE) Sirius Real Estate Ltd share price was -0.8p at 63.2p

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