Sirius Real Estate has announced the acquisition of a light industrial business park in Fulda, Hesse. The transaction amounts to a total cost of EUR 49.8 million. The property, strategically located northeast of Frankfurt, expands the company's German portfolio and is integrated into its existing strategy.
The business park has a lettable area of 57,771 square metres. It is situated on a 112,867 square metre plot and was fully let at the time of acquisition. The property generates annual rental income of approximately EUR 3.93 million, with a weighted average unexpired lease term (WALT) of 5.1 years. The purchase price, including acquisition costs, corresponds to an EPRA Net Initial Yield of 7.8 per cent.
A key aspect of this acquisition is the business park's main tenant. This is a leading European manufacturer of ballistic protection equipment and protection systems for the military, police and security authorities. This company has been present at the Fulda site since 2014. Demand for the main tenant's products benefits from structural growth, supported by increased defence and security spending in Germany and Europe. This development ensures multi-year production capacity utilisation and underlines the strategic relevance of the property within this sector.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented on the transaction. He emphasised that the acquisition of the business park in Fulda further strengthens the German portfolio. He highlighted the quality of the income, which offers an attractive risk-return profile and underpins the prospect of a dividend increase. Coombs pointed out that the tenant has a long-term commitment to the location and benefits from clear growth prospects resulting from increased government investment in defence.
The acquisition is viewed in line with the company's strategy to acquire well-located business and industrial parks, especially those whose tenants benefit from structural growth drivers and state-backed demand. The aim is to integrate these properties into the operational platform to create long-term value. This investment is interpreted as confirmation of a 'first-mover advantage' aimed at capitalising on opportunities in properties that benefit from long-term growth trends.
