FRANKFURT: Sirius Real Estate, the leading operator of branded business parks providing conventional space and flexible workspace in Germany, has completed the acquisition of a business park in Teningen, north of Freiburg, for €6.5 million, including acquisition costs, reflecting an EPRA net initial yield of 8.3%.[the_ad id=”31605″]The vendor is the Ascom Group, a Swiss healthcare solution provider. Notarised on 22 March 2019, the acquisition has been funded from existing cash resources.
The business park is well located in the economically strong metropolitan region of Freiburg, which is located in the Federal State of Baden Württemberg in the South West of Germany and in the vicinity of Strasbourg (France) and Basel (Switzerland), with easy access to the A5 Hamburg – Basel motorway and the national rail network.
The property provides lettable area of 20,000 sqm (40% warehouse/production space; 38% offices; 19% laboratory; and, 3% of other space) on a 43,000 sqm site. It is currently leased to seven tenants, with occupancy at 88% and producing annual net operating income of €542,000. The weighted average lease expiry is 1.6 years.
Tenants include Delta Energy Systems, a subsidiary of the international Delta Group, which provides innovative, environmentally friendly and efficient energy solutions; the headquarters of FRAKO which operates internationally in power factor correction, power quality and energy management; and Conworx, a subsidiary of Siemens, which provides technical services in medical technology and laboratory diagnostics.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said: “This is our first investment in the area around Freiburg which, while not within our primary target of Germany’s seven key cities, has some very attractive characteristics particularly given its location close to the French and Swiss borders.
“The asset has significant asset management potential, playing to the strengths of our integrated business model and track record of achieving both efficiencies and maximising occupation. There is also the potential to develop around 2,000 sqm of additional space from surplus land”.