€43.7 million Munich-area acquisition: what Sirius is buying and why
Sirius Real Estate has signed (notarised) the purchase of a defence-anchored business park in Feldkirchen, just outside Munich, for €43.7 million including acquisition costs. The site offers 27,180 sqm of gross lettable area, is 20 minutes from central Munich and less than 10 minutes from Sirius’ existing Grasbrunn Business Park – handy for operations and cross-selling.
The park is 94% occupied and currently generates €3.4 million of annualised rent roll. The deal is struck at an EPRA Net Initial Yield (a standardised, net-of-costs measure of initial income return) of 7.8%, with a weighted average unexpired lease term (WAULT) of 7.8 years. In short: long leases, high occupancy, and a decent starting yield in a prime German region.
Key deal numbers investors will care about
| Metric | Figure |
|---|---|
| Purchase price (incl. costs) | €43.7 million |
| Gross lettable area | 27,180 sqm |
| Annualised rent roll | €3.4 million |
| Occupancy | 94% |
| WAULT (to expiry) | 7.8 years |
| EPRA Net Initial Yield | 7.8% |
| Anchor tenant share | 72% (Excelitas) |
| Anchor lease term to expiry | 10.2 years |
| Proximity | ~20 mins to central Munich; <10 mins to Sirius’ Grasbrunn |
Defence-anchored income: who’s on site and how secure is it?
The asset is anchored by Excelitas, a leading photonics manufacturer serving defence, aerospace, medical and industrial markets, occupying 72% of the park with 10.2 years to lease expiry. That’s meaningful income visibility, and it ties into Sirius’ stated focus on benefiting from increased defence spending.
Other tenants include OVOL Papier (part of Japan Pulp & Paper Group), the IWV Institut für Wirtschaftsmathematik, and a Bosch subsidiary. The RNS notes several smaller tenants have shorter leases, which creates scope to lift rents over time as leases reprice to market.
What the numbers imply: yield, pricing, and reversion
A 7.8% EPRA NIY in the Munich area stands out as attractive for an economically strong, supply-constrained region. On the simple maths, the purchase price equates to roughly €1,600 per sqm (based on €43.7 million over 27,180 sqm). The in-place rent roll works out at about €125 per sqm per year.
Occupancy at 94% leaves some easy-to-understand upside. If the remaining space were let at current average rents, that vacancy alone would be worth roughly €0.2 million extra rent per year by back-of-the-envelope calculation. Add in “rental tone” improvement from shorter leases, and you have a credible path to grow income without assuming heavy capex.
Strategic fit: Germany-weighted acquisitions and local synergies
Sirius flagged earlier in October that its acquisition programme would skew towards Germany in the back half of the financial year. This deal delivers on that, and the location is no accident: Munich is cited as Germany’s strongest city economy and a resilient logistics hub with a diverse base across manufacturing, finance, media and tech.
The Feldkirchen park sits less than a 10-minute drive from Sirius’ Grasbrunn asset, promising operational synergies. Practically, proximity can mean shared on-site teams, smoother leasing, and easier asset management – the kind of basics that drive margins in Sirius’ model of hands-on park operations.
Scale keeps building: €340 million of 2025 acquisitions so far
Following this transaction, Sirius says it has acquired around €340 million of income-producing assets across the U.K. and Germany so far in 2025, including sites in Dresden, Lübeck, Munich, Reinsberg, Monchengladbach, Hartlebury, Bedford, Oldham and Chalcroft. For context, as at 31 March 2025 the portfolio stood at over €2.7 billion across 145 assets and 10,477 tenants with a €221.4 million rent roll.
On that base, €340 million of fresh acquisitions in the year to date is meaningful, roughly in the low-teens as a percentage of the March 2025 portfolio value. It signals continued confidence in the operating platform and the opportunity to buy at “attractive yields” and then lift income through intensive asset management.
Why this matters: my take on the positives and the watch-outs
What looks positive
- Solid starting income: 7.8% EPRA NIY with a 7.8-year WAULT provides visibility and cash yield.
- Tenant quality: Excelitas anchors 72% on a 10.2-year term, complemented by OVOL Papier, IWV and a Bosch subsidiary.
- Reversion potential: 94% occupancy and shorter leases on smaller units create room to push rents.
- Strategic clustering: Less than 10 minutes from Sirius’ Grasbrunn site should aid efficiency and leasing.
- Defence tailwind: Exposure to a defence supplier aligns with the company’s strategy to benefit from increased sector spending.
Risks and considerations
- Tenant concentration: 72% with a single anchor is efficient but concentrates income. The 10.2-year term helps mitigate.
- Execution risk: The uplift case relies on asset management – reletting vacancy and resetting rents on shorter leases.
- Financing not disclosed: The RNS doesn’t specify funding mix or cost of debt, so it’s hard to judge accretion after financing.
- Capex not disclosed: No detail on required investment to “improve the site” – this will affect net returns and timing.
- Closing timeline: The deal is notarised; completion timing and conditions are not disclosed.
How it fits Sirius’ model
Sirius’ playbook is consistent: acquire at an attractive yield, integrate into the branded park network (Sirius in Germany, BizSpace in the U.K.), reconfigure or upgrade space to match local demand, drive occupancy and rent, and recycle capital when an asset matures. The Feldkirchen park fits that brief neatly, with an immediate income base and levers for growth.
Alongside the core portfolio, Sirius also holds a 35% stake in Titanium, its €350+ million German-focused joint venture with clients of AXA IM Alts. That optionality can help the group allocate capital across balance sheet and JV routes depending on pricing and strategy.
Bottom line: a chunky yield in a prime German corridor
This is a straightforward, income-led acquisition in a high-quality location. The numbers point to a decent starting yield, long-dated anchor income and tangible reversion. The proximity to Grasbrunn and the defence angle add strategic flavour.
The two missing pieces are financing and capex, which will ultimately determine how accretive the purchase is at the shareholder level. Even so, judged on the asset’s fundamentals and Sirius’ operating model, Feldkirchen looks like the kind of park where Sirius can do what it does best: steady income today, with scope to nudge rents and values higher over time.
