Sirius Real Estate acquires German business park for $57 million

Sirius Real Estate Limited, the Guernsey-incorporated property group listed on the London and Johannesburg stock exchanges, has completed the acquisition of a defence-supported business park in Fulda, Germany, for €49.8 million ($56.79 million), reinforcing its strategy of investing in high-yield industrial assets.

Fulda asset delivers strong yield returns

The Fulda site, located northeast of Frankfurt in the Hesse region, comprises 57,771 square meters of lettable space on a 112,867 square meter plot. The fully occupied asset currently generates an annual rent roll of about €3.93 million ($4.48 million), with a weighted average lease expiry of 5.1 years. The acquisition reflects an EPRA Net Initial Yield of 7.8%.

The property is production-led, with a significant share of space dedicated to manufacturing and warehousing. It is anchored by a leading European manufacturer of ballistic protection equipment and security systems serving military, police, and law enforcement agencies. The tenant, which has operated at the site since 2014, is benefiting from rising demand driven by increased defence and security spending across Germany and Europe.

Defense tenant anchors long-term income stability

The manufacturer is involved in several major defence programs, including Germany’s MOBAST initiative, under which more than 300,000 modular ballistic protection vest systems have been ordered. It also supplies equipment to German Special Forces and other European security agencies, providing long-term production visibility and reinforcing the strategic importance of the asset.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, said the acquisition strengthens the group’s German portfolio while offering an attractive balance of risk and return. He noted that the tenant’s long-term commitment and exposure to government-backed defence spending provide strong income security and growth potential.

“This acquisition aligns with our strategy of acquiring well-located business and industrial parks at attractive yields, particularly where occupiers benefit from structural growth drivers and government-supported demand,” Coombs said.

Strategy targets high-growth industrial sectors

Founded more than two decades ago, Sirius Real Estate focuses on acquiring, repositioning, and managing business parks across Germany and the United Kingdom. As of March 31, 2026, the company’s portfolio included 145 assets leased to over 10,000 tenants, with a total book value of approximately €3 billion ($3.42 billion) and an annualized rent roll of €258.6 million ($319.38 million).

The latest acquisition underscores Sirius’ continued push into assets linked to mission-critical industries, particularly those supported by long-term government spending, as it seeks to drive rental growth and deliver sustained returns to shareholders.