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(Sharecast News) - Real estate investment trust Sirius Real Estate said on Thursday that it has notarised the acquisition of a lightindustrial business park in Fulda, northeast of Frankfurt, for a total cost of 49.8m.
Sirius Real Estate said the site, which sits on a 112,867 square metre plot and provides 57,771 square metres of lettable space, was fully occupied and generates annual rental income of 3.93m.
The purchase price reflects a 7.8% EPRA net initial yield and carries a weighted average lease expiry of 5.1 years.
Sirius said the asset, which was predominantly productionled, with a large share of space used for manufacturing and warehousing, was anchored by a major European producer of ballistic protection equipment for military and lawenforcement customers, which currently accounts for 78% of the rent roll. The tenant has agreed to take additional space as it becomes available, a move expected to transition the site towards an almost singletenant property with rental income of around 4m.
The FTSE 250-listed group added that the acquisition aligns with its strategy of targeting assets supported by longterm demand drivers and offering strong income visibility alongside further assetmanagement potential.
Chief executive Andrew Coombs 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 and brings our portfolio of recently acquired defence assets to just over 200m at a blended gross yield of circa 8.9%. We have already identified opportunities to grow income through the expansion of the anchor tenant, while benefiting from the strength of the existing rent roll from day one."
As of 1000 BST, Sirius shares were flat at 98.60p.
Reporting by Iain Gilbert at Sharecast.com
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