Sirius Real Estate buys Kiel defence-anchored business park for $107 million

Sirius Real Estate Limited, the UK- and Guernsey-listed owner and operator of branded business and industrial parks in Germany and the U.K., has completed the acquisition of a defence-anchored business park in Kiel, Germany, for €93.4 million ($107.1 million), including acquisition costs. 

This comes barely two weeks after Sirius secured a €300 million ($345.74 million) unsecured revolving credit facility, which enhances its capacity to fund acquisitions and manage liquidity.

The property is predominantly let to Rheinmetall, Germany’s largest defence company, alongside other tenants in defence, infrastructure, testing, and automation sectors.

Strategic acquisition in a defence hub
The Kiel business park sits on a 226,600 sqm plot and offers 78,170 sqm of gross lettable area across production, warehouse, office, and laboratory space. The site is 98.5% occupied and generates €7.78 million ($8.92 million) in annual rental income, with a weighted average lease expiry (WALE) of four years. The deal reflects an EPRA Net Initial Yield of 8.2%, while an on-site 955 sqm development, due to complete in 2027, will house a robotics and systems automation tenant under a 10-year lease.

Kiel’s strategic location on Germany’s northern coast provides direct access to the Baltic Sea and a major naval base, making the business park a key logistics and manufacturing hub for both commercial and defence industries. Rheinmetall uses the site for research and development of electrical systems for land vehicles, a core growth area, while the second-largest tenant produces rail locomotives for European markets.

Building on a defence-focused portfolio
This acquisition adds to Sirius’ growing portfolio of defence-related assets, with over €200 million ($229.2 million) invested in the sector in Germany and the U.K. over the past 12 months. Recent purchases include a Munich business park leased to a laser-defence technology firm and a Bedford, U.K. site used by an electric components manufacturer for military aircraft systems.

“The acquisition of this multi-let business park delivers immediate income and significant potential to extend WALE, enhance rental tone, and grow revenue through on-site development,” said Andrew Coombs, Sirius Real Estate CEO. “Anchored by Rheinmetall and strategically located near Kiel’s naval base, this acquisition strengthens our broader defence property portfolio and positions us to benefit from rising government investment in the sector.”

Sirius strong portfolio strategy
Sirius Real Estate owns and operates branded business and industrial parks across Germany and the United Kingdom, offering conventional and flexible workspace solutions. As of September 2025, it operates 153 assets across Germany and the U.K., with a total book value of €2.8 billion ($3.21 billion) and a rent roll of €242.5 million ($277.92 million). 

The company continues to pursue acquisitions that combine attractive yields with strategic occupier demand, enhancing shareholder returns through active asset management and selective capital recycling.