Sirius notarises acquisition of business park

LSE (GBP) Share Code: SRE

Sirius Real Estate Limited

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

Sirius notarises acquisition of defence supported business park in Fulda for €49.8 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 light-industrial business park in Fulda, north east of Frankfurt in the Hesse region, Germany, for total acquisition costs of €49.8 million.

The site comprises 57,771 sqm of lettable space on a 112,867 sqm plot and is fully let, currently generating annual rent roll of €3.93 million, with a 5.1 year weighted average lease expiry. The purchase reflects an EPRA Net Initial Yield of 7.8%.

The asset is production-led, with a significant proportion of space utilised for manufacturing and warehousing, and is anchored by a leading European manufacturer of ballistic protection equipment for military and law enforcement customers. The tenant currently represents 78% of the rent roll and has agreed to take additional space as it becomes available, which is expected to result in the site transitioning to an almost entirely single-tenant asset over time, with annual rental income of approximately €4.0 million.

The tenant has been based at the site since 2014 and is benefiting from increasing demand driven by structural growth in defence and security spending across Germany and Europe. The acquisition therefore aligns with Sirius' strategy of targeting assets supported by long-term demand drivers, while offering strong income visibility and further asset management potential.

Hesse has the highest GDP per capita of any state in Germany and is one of the country's economic powerhouses. Fulda is in an excellent strategic location for industrial occupiers and is approximately 100km from Frankfurt. With direct access to Europe's longest motorway, the A7 Autobahn, as well as the A66 corridor, the site also benefits from strong local connectivity with 11 bus lines and an integrated regional rail and bus interchange serving the wider Hesse catchment.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "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 €200 million 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. The acquisition is therefore highly complementary to our platform and supports our continued focus on generating sustainable income growth alongside selective asset management opportunities.

The Group will publish full year results on 1 June 2026 and management will host an investor presentation on that day. Interested parties should contact FTI Consulting at SiriusRealEstate@fticonsulting.com to register for attendance.

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