Prime Highlights

• Sirius Real Estate acquires fully-let Fulda business park for 49.8 million euros, expanding its defence-focused property portfolio in Germany.  

• Fulda site is anchored by a European ballistic protection equipment manufacturer supplying military, police and law enforcement customers across Europe. 

Key Facts

• Andrew Coombs confirms 7.8% net initial yield, with a 5.1-year weighted average lease expiry on the asset.  

• Site generates about 3.93 million euros in annual rent, backed by long-term German defence spending programmes. 

Background

Sirius Real Estate has acquired a business park in Fulda, Germany, for 49.8 million euros, expanding its portfolio of properties with a defence-focused tenant base. The London and JSE-listed owner of branded business and industrial parks confirmed the deal.

The light industrial park, located north-east of Frankfurt in the Hesse region, spans 57,771 square metres of lettable space on a 112,867 square metre plot.
The site is fully let, generating an annual rent roll of about 3.93 million euros, with a weighted average lease expiry of 5.1 years. The purchase price reflects a net initial yield of 7.8 percent under EPRA standards.

The production-led asset is anchored by a leading European manufacturer of ballistic protection equipment, including bulletproof vests and protective systems supplied to military, police and law enforcement customers.

The tenant has occupied the site since 2014 and continues to benefit from structural growth in defence and security spending across Germany and Europe, said Sirius CEO Andrew Coombs.

The tenant participates in several defence and security programmes, including the German Armed Forces’ MOBAST programme, under which more than 300,000 modular ballistic protection vest systems have been ordered, alongside follow-on supply arrangements for German Special Forces and other European military and law enforcement customers.

Coombs said the scale of these programmes supports multi-year production visibility at the site, and the acquisition fits Sirius’ strategy of investing in well-located industrial assets with strong occupier fundamentals and exposure to government-backed defence demand.

He added that the deal strengthens the company’s German portfolio and offers an attractive risk-return profile that supports continued dividend progression.

Read Also : Yalla Sahel Initiative Aims to Transform Egypt’s North Coast Tourism