Sirius Real Estate closes €43.7 million deal for Feldkirchen (Munich) business park
Sirius Real Estate has completed the acquisition of a business park in Feldkirchen, near Munich, for €43.7 million including acquisition costs. The asset brings in €3.4 million of annualised rent, is 94% occupied, and comes with a weighted average unexpired lease term (WAULT) of 7.8 years.
The purchase price reflects an EPRA Net Initial Yield (NIY) of 7.8%. That’s a straightforward, income-led buy, and it slots neatly into Sirius’s strategy of acquiring at attractive yields and driving further value through active asset management.
What Sirius bought and why it matters
This is a multi-let business park with a strong anchor tenant: Excelitas, a specialist in high-performance optical and photonic solutions for defence, aerospace, medical and industrial applications. Excelitas occupies 72% of the park on a lease with 10.2 years to run, giving serious income visibility.
Other tenants include OVOL Papier (part of Japan Pulp & Paper Group), the IWV Institut für Wirtschaftsmathematik, and a subsidiary of Bosch. Occupancy is already a healthy 94%, and Sirius highlights “several smaller tenants on shorter leases” as a source of potential rental upside.
The CEO also points to a timely thematic angle: expected beneficiaries of Germany’s ramp-up in defence spending. With Excelitas as anchor, this park looks well placed for that trend to feed through to space demand and pricing over time.
EPRA NIY, WAULT and rent roll – quick definitions
- EPRA Net Initial Yield (NIY): a standard property yield metric showing the income return on the purchase price (including costs) based on current net rents.
- WAULT: weighted average unexpired lease term – effectively, how long the income is contracted for across the tenant base.
- Annualised rent roll: the total annual rental income being generated at current contracted rents.
The investment case: strong yield today, scope for upside
A 7.8% EPRA NIY on a Munich-area business park is a punchy starting return, particularly with a 7.8-year WAULT underpinning it. The 94% occupancy leaves some headroom to drive income by leasing up the remaining 6%, and those shorter-lease smaller tenants provide opportunities for re-letting or re-pricing as leases roll.
Crucially, the Excelitas lease has 10.2 years left. That offsets the concentration risk of a single tenant taking 72% of the space, because the cash flow is locked in for a decade. Sirius’s in-house asset management model is designed to extract value through refurbishment, reconfiguration and tighter cost recovery – exactly the sort of work that can lift rents and values over time.
How this fits Sirius’s broader strategy
Management is sticking to its knitting: buy at attractive yields, integrate into the platform, optimise, and recycle capital when maturity is reached. According to the CEO, this deal adds €3.4 million of annualised rent on top of the €20 million already added so far this year, taking year-to-date additions to €23.4 million.
As at 30 September 2025, Sirius’s portfolio stood at 153 assets, let to 10,958 tenants, with a total book value of €2.8 billion and a total rent roll of €242.5 million. The Group also owns 35% of Titanium, its €350+ million German-focused joint venture alongside clients of AXA IM Alts. This new Munich-area asset looks firmly on-brand and scale-appropriate for the platform.
Key numbers from the Feldkirchen acquisition
| Purchase price (incl. costs) | €43.7 million |
| Annualised rent roll | €3.4 million |
| EPRA Net Initial Yield | 7.8% |
| Occupancy | 94% |
| WAULT (to expiry) | 7.8 years |
| Anchor tenant | Excelitas (72% of park) |
| Anchor lease term remaining | 10.2 years |
| Other tenants | OVOL Papier, IWV Institut für Wirtschaftsmathematik, subsidiary of Bosch |
| Transaction notarised | 20 October 2025 |
| Completion announced | 21 November 2025 |
My take: the positives and the watch-outs
What looks good
- Immediate income at 7.8% NIY on a purchase price including costs – clean, accretive yield.
- Long income profile with a 7.8-year WAULT and a 10.2-year anchor lease for Excelitas.
- Occupancy already high at 94%, yet still with clear levers for rental growth via lease events and leasing the remaining space.
- The defence-linked anchor tenant aligns with management’s comment on benefiting from increased German defence spending.
- Fits Sirius’s proven playbook of intensive asset management across a €2.8 billion portfolio.
What to keep an eye on
- Tenant concentration: 72% of space with one occupier concentrates risk, even if mitigated by the 10.2-year lease term.
- Execution risk on the “upside”: delivering rent increases from shorter leases and leasing the final 6% will depend on local demand and pricing power.
- No financing detail disclosed: the RNS doesn’t specify how the acquisition is funded, so we cannot assess immediate balance sheet impact.
Why the yield checks out
For those who like the quick maths, €3.4 million of annualised rent on a €43.7 million price (including costs) equates to roughly 7.8% – in line with the stated EPRA NIY. That’s effectively paying about 12.9x annual rent for the asset, before any growth from leasing or re-pricing.
With occupancy not quite full and a set of shorter leases to work through, there are credible routes to nudge that income higher over the medium term, assuming the asset management plan plays out.
What I’ll be watching next
- Leasing progress: how quickly Sirius fills the remaining 6% vacancy and at what rental levels.
- Lease events on smaller units: evidence of rental uplifts or improved terms as shorter leases roll.
- Any confirmation of defence-sector demand translating into enquiries or expansions at the park.
- Updates on total rent roll added in 2025, now €23.4 million including this deal, and how that translates to like-for-like growth across the wider portfolio.
Overall, this looks like a classic Sirius acquisition: a solid, income-focused asset with embedded optionality and a long-dated anchor tenant. It should contribute meaningfully to cash flow today, with asset management providing the kicker over time.
