Sirius Real Estate buys Fulda industrial park for $58 million, boosts defence-linked portfolio

Sirius Real Estate Limited, the Guernsey-incorporated owner and operator of business and industrial parks across Germany and the U.K., has notarised the acquisition of a light-industrial business park in Fulda, Germany, for €49.8 million ($57.8 million), expanding its portfolio of income-generating assets tied to long-term structural demand in the European industrial sector.

The asset, located in the Hesse region north-east of Frankfurt, reinforces Sirius’ strategy of acquiring high-yielding business parks with strong tenant visibility and embedded growth potential.

High-yield industrial asset in strategic German hub

The property comprises 57,771 square metres of lettable space on a 112,867 square metre site and is fully occupied, generating annual rental income of €3.93 million ($4.56 million). It carries a weighted average lease expiry of 5.1 years and reflects an EPRA net initial yield of 7.8%.

The site is production-led, with significant usage across manufacturing and warehousing. It is anchored by a major European producer of ballistic protection equipment serving military and law enforcement customers.

The anchor tenant accounts for 78% of total rental income and has agreed to expand its occupancy as additional space becomes available. This is expected to gradually shift the property toward a near single-tenant structure, with potential annual rent rising to about €4 million ($4.64 million).

Defence-linked demand driving occupancy stability

The tenant has operated from the site since 2014 and continues to benefit from rising defence and security spending across Germany and Europe. This demand trend has strengthened the asset’s long-term income profile and supports Sirius’ increasing exposure to defence-related industrial occupiers.

The acquisition adds to the group’s growing portfolio of defence-supported properties, which now exceeds €200 million in total value at a blended gross yield of approximately 8.9%.

Strategic location in Germany’s economic heartland

Fulda sits in the economically strong state of Hesse, which has the highest GDP per capita among German states. The site benefits from proximity to Frankfurt, approximately 100 kilometres away, and sits along key logistics corridors including the A7 Autobahn and the A66 route.

The location is further supported by integrated regional transport infrastructure, including multiple bus lines and rail connections, enhancing accessibility for industrial tenants across the wider region.

Growth-through-management strategy

Sirius Real Estate Limited said the acquisition offers immediate income stability alongside opportunities for targeted asset management and tenant expansion.

Chief Executive Officer Andrew Coombs said the deal aligns with the company’s focus on high-yield industrial assets supported by structural demand drivers, particularly within manufacturing and defence-related sectors.

He added that the group has already identified opportunities to expand the anchor tenant’s footprint at the site, which could further strengthen rental income over time. The group said it will publish its full-year results on 1 June 2026, followed by an investor presentation on the same day.