Sirius Real Estate has notarised the acquisition of a business park in Klipphausen, near Dresden, together with an adjacent land parcel for an acquisition price of EUR 13.75 million (£11.73 million). The acquisition has been made using the proceeds of November 2023's EUR 165 million (£147 million) capital raise. It represents the third asset to be acquired by Sirius in Germany this calendar year, and the sixth asset to be acquired across both Germany and the U.K. in recent months.

The site has been acquired from a corporate owner occupier who plans to vacate the building, which is expected to be six months after completion. Sirius' plan is to convert the site, which currently comprises approximately 17,700 sqm of modern primarily light industrial and production space, into a multi-tenanted business park. Sirius' asset management platform has identified multiple parties interested in leasing space at the site, which in aggregate is already in excess of the site's entire leasable area.

The plan is also to expand the park through the development of the adjacent 10,000 sqm land parcel which forms part of the acquisition. In order to allow a smooth departure from the property, Sirius has granted the vendor a six-month lease, which can be extended by two months at their option, in return for a rent of EUR 200,000 per month. This short-term lease will provide Sirius with valuable preparation time ahead of the vendor vacating, as well as contribute to the planned investment into the site.

The property is strategically located in the town of Klipphausen, near Saxony state in Germany. The business park sits within a highly desirable micro-location in the economically important "Silicon Saxony", a registered industry association of nearly 300 SME businesses, and benefits from good transport networks and connectivity. The Klipphausen asset will be the second business park owned and operated by the Company in or near Dresden, enabling Sirius to leverage a number of operational synergies alongside its local market expertise.