Sirius Real Estate Acquires Reinsberg Business Park in Germany
Why we think this is good
The acquisition of the Reinsberg business park is a positive strategic move for Sirius Real Estate. The asset is well-occupied, generating attractive rental income, and provides an opportunity for Sirius to add value by leasing up the vacant space. The purchase price represents a good yield, and the operational synergies with nearby Sirius properties are an added benefit. Overall, the RNS indicates a well-executed transaction that aligns with the company's core business model and is likely to have a positive impact on its financial performance and valuation.
Key Points
- Sirius Real Estate acquires Reinsberg business park in Germany for €20.4 million
- The asset is 75% occupied, generating €1.5 million in annual rental income
- Remaining 25% vacancy provides opportunity for Sirius to add value
- Purchase price represents a 6% EPRA NIY after purchase costs
- Acquisition aligned with Sirius' strategy of acquiring and integrating business parks
Summary
Sirius Real Estate has notarised the acquisition of a business park in Reinsberg, Germany, for €20.4 million. The asset is 75% occupied, with the majority under a 10-year full repairing and insuring lease to the vendor, generating €1.5 million in annual rental income. The remaining 25% vacancy provides Sirius with an opportunity to add value by leasing up the space. The purchase price represents a 6% EPRA NIY after purchase costs. The asset is located close to other Sirius properties, allowing for operational synergies. Broker targets indicate a "Buy" recommendation with a price target of 115p, representing upside potential from the current share price.