The acquisition of the multi-tenanted business park in Mönchengladbach represents a net initial yield (NIY) and follows the recent successful disposal of Sirius’s Bizspace Tyszeley business park at 5.6% premium to book value. The acquisition of Mönchengladbach allows us to take ownership of an asset with enormous potential,” Sirius CEO Andrew Coombs said in a JSE notice.
“It will provide day-one income and a longer-term opportunity to attract occupiersto the business park through asset management, with active operational focus from a close proximity to our portfolio in the region.”
Sirius has also secured consents for the sale of Bizspace Cardiff site for £5.08m, representing a 10% premium to book value. This is the first disposal in the UK this financial year, with these sales seeing an average premium of 6.5% to book value, Coombs said.
The Mönchengladbach site is being acquired through a sale and partial leaseback agreement with current owner SMS Group, a global engineering and plant construction company that occupies about 26% of the site.
“We are also pleased to have undertaken another sale and leaseback deal, allowing our team to work with corporate owner-occupiers to help them extract value from their property assets while meeting operational locations that are highly important to the continuity of their business. We see significant potential for similar transactions with many SMS Group sites.”
The new leases with SMS Group, which is one of the largest employers in Mönchengladbach and has its global headquarters adjacent to the site, have been secured on terms between 3 and 10 years. These leases will contribute materially to the asset’s day one rent roll to 49%, said Coombs. The 124,500 square metre business park has a gross lettable area of 70,899 square metres, 65% of which is production and warehouse space, and includes a 27.9 square metre car park with around 1185 spaces.
“It is 66% occupied, leaving plenty of value-add opportunities fo...
“It will provide day-one income and a longer-term opportunity to attract occupiersto the business park through asset management, with active operational focus from a close proximity to our portfolio in the region.”
Sirius has also secured consents for the sale of Bizspace Cardiff site for £5.08m, representing a 10% premium to book value. This is the first disposal in the UK this financial year, with these sales seeing an average premium of 6.5% to book value, Coombs said.
The Mönchengladbach site is being acquired through a sale and partial leaseback agreement with current owner SMS Group, a global engineering and plant construction company that occupies about 26% of the site.
“We are also pleased to have undertaken another sale and leaseback deal, allowing our team to work with corporate owner-occupiers to help them extract value from their property assets while meeting operational locations that are highly important to the continuity of their business. We see significant potential for similar transactions with many SMS Group sites.”
The new leases with SMS Group, which is one of the largest employers in Mönchengladbach and has its global headquarters adjacent to the site, have been secured on terms between 3 and 10 years. These leases will contribute materially to the asset’s day one rent roll to 49%, said Coombs. The 124,500 square metre business park has a gross lettable area of 70,899 square metres, 65% of which is production and warehouse space, and includes a 27.9 square metre car park with around 1185 spaces.
“It is 66% occupied, leaving plenty of value-add opportunities fo...
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The Mercury (Digital) - 1 Issue, March 28, 2025