Sirius Real Estate/marcus wichert
Andrew Coombs, CEO, Sirius Real Estate
In a further move to bolster its defence-related industrial holdings, Sirius Real Estate has bought a light-industrial business park in Fulda, north-east of Frankfurt, 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, generating an annual rent roll of approximately €3.93 million with a weighted average lease expiry of 5.1 years. The purchase price reflects an EPRA Net Initial Yield of 7.8%.
The asset is anchored by a leading European manufacturer of ballistic protection equipment — including bullet-proof vests and protective systems for military, police and law enforcement customers — which has occupied the site since 2014. The tenant is a supplier to Germany's MOBAST programme, under which more than 300,000 modular ballistic protection vest systems have been ordered for the Bundeswehr, as well as follow-on arrangements for German Special Forces and other European security customers.
Sirius CEO Andrew Coombs said the acquisition offered "a very attractive risk/return relationship" given the income quality and the tenant's clear runway from increasing government commitments to defence spending. The Fulda acquisition is the latest in Sirius' strategy of targeting well-located business and industrial parks with strong occupier fundamentals and exposure to structural growth sectors.