Sirius Real Estate Executes €43M German Portfolio Reshuffle with Lübeck Acquisition and Pfungstadt Disposal

Well, well, well. Sirius Real Estate’s just pulled off a classic case of portfolio chess in Germany – and it’s a €43 million move that tells us plenty about their strategy. Swapping out an older asset for a fresh opportunity? Let’s unpack why this matters.

The Deal in a Nutshell

Sirius has executed two complementary transactions:

• Acquired: A €12.67m multi-let business park in Lübeck (northern Germany) at a 7.9% EPRA Net Initial Yield.
• Disposed: Their Pfungstadt park near Frankfurt for €30m – a tasty 9% premium to book value and a 6.8% yield exit.

Net effect? They’ve recycled capital from a mature holding into a higher-yielding asset with serious growth potential. Textbook Sirius.

Why Lübeck’s a Smart Buy

This isn’t just any German industrial park. Lübeck brings strategic heft:

The Asset Itself

• Scale: 14,810 sqm of lettable space (67% production/warehouse, 33% offices) on a 21,650 sqm plot.
• Income Now: €1.05m annual rent (88% occupied), rising to €1.13m by August 2025 with a pre-agreed lease taking occupancy above 95%.
• Tenant Quality: Diversified base anchored by three established firms (medical diagnostics, industrial manufacturing, food processing) providing 72% of rent. WALE of 4.9 years adds stability.

The Location Goldmine

Here’s where it gets juicy. Lübeck isn’t just a pretty Hanseatic city:

• Germany’s largest Baltic Sea port (25m+ tonnes cargo annually), linking Sweden, Finland & Baltic states.
• One hour from Hamburg (where Sirius already operates four parks).
• On the A1 autobahn – critical logistics arteries matter.
• The kicker? A €7.5 billion infrastructure megaproject: a tunnel linking Lübeck to Copenhagen by 2029 (1-hour drive) and 88km of new rail. That’s not just concrete – it’s future tenant demand being laid.

Buying at 7.9% yield with embedded rental growth and a city-scale tailwind? That’s Sirius spotting value others might miss.