Sirius to acquire defence-anchored business park

LSE (GBP) Share Code: SRE

Sirius Real Estate Limited

("Sirius Real Estate", "Sirius", the "Company" or the "Group")

Sirius to acquire defence-anchored business park in Kiel for €93.4 million

Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has notarised the acquisition of a business park in Kiel, Germany, for €93.4 million (including acquisition costs), adding another defence anchored asset to its portfolio. The property is predominantly let to Rheinmetall, Germany's largest defence company, together with a number of other companies in the defence, infrastructure, testing and automation sectors.

Located in Kiel, the capital of the state of Schleswig-Holstein in northern Germany and one of the country's strategic defence hubs. The property sits on a 226,600 sqm plot and offers a gross lettable area of 78,170 sqm. It comprises production and warehouse, office and laboratory space.

The purchase terms reflect an EPRA Net Initial Yield of 8.2%, and the business park, which is currently 98.5% occupied, generates €7.78 million of annual rental income, with a weighted average lease expiry (WALE) of 4.0 years.

Rheinmetall undertakes research and development of electrical systems for land vehicles at the site, an area of significant growth for the company, while the second largest tenant on site produces rail locomotives for European use.

The acquisition also includes a 955 sqm development which is on site and due to complete in 2027. At this time, an existing tenant, specialising in systems automation and robotics integration, will take occupation of a new building under a new 10-year lease, further enhancing the asset's rent roll.

Situated on Germany's Northern Coast leading directly into the Baltic Sea, Kiel is a major maritime industrial defence and transport hub, with its port and shipyard area and natural inlet making it a strategic logistics and manufacturing base for the German Navy, as well as the commercial maritime industry.

This acquisition further bolsters Sirius' portfolio of industrial estates let to businesses in the defence-related sectors, with over €200 million invested into this sub-sector in Germany and the U.K. over the past 12 months. Recent acquisitions include a business park in Feldkirchen, Munich, which is predominantly let to a company specialising in laser-defence technology, alongside a business park in Bedford, U.K. which is used by an electric components manufacturer to make component parts for ejector seats in modern military jets.

The Group continues to progress further asset acquisitions in Germany and looks forward to updating the market on another successful year of growth in its year end trading update, scheduled for release on Monday, 13 April 2026.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "The acquisition of this multi-let business park delivers immediate income and offers further significant potential to improve rental tone, extend the WALE and drive further revenue growth through on-site development. This site is anchored by Rheinmetall, Germany's largest defence company and is strategically located close to one of Germany's major naval bases in Kiel. This acquisition also adds to our broader portfolio of defence-related properties, further positioning the business to support the projected increase in government investment into defence and the resulting growth in occupier demand across the sector."

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