In March 2025, Sirius Real Estate, a leading operator of flexible office and industrial space in Germany and the UK, announced the acquisition of a multifunctional commercial property in Mönchengladbach, Germany. The deal, valued at €17.2 million, is part of the company’s ongoing strategy to strengthen its footprint in key German markets through selective, income-generating investments.
Overview of the Acquisition
The acquired site comprises approximately 70,899 square meters of total lettable area, of which about 65 percent is dedicated to warehouse and industrial use. The property also includes a spacious parking area of 25,773 square meters, providing capacity for up to 1,000 vehicles.
At the time of purchase, the occupancy rate stood at 66 percent, offering significant room for rental income growth through leasing of the vacant units. The site’s flexible layout and industrial functionality make it suitable for a wide range of tenants, particularly those in logistics and light manufacturing.
Transaction Terms and Income Profile
The acquisition was structured as a partial sale-and-leaseback with the seller, SMS Group, which remains a tenant occupying approximately 26 percent of the space. Lease terms vary between 3 and 10 years, with a weighted average lease term (WALT) of 6 years.
Annual rental income from the asset at the time of acquisition was €2.43 million, providing a net initial yield of 8.21 percent. This yield reflects both immediate income and future value-add potential as occupancy is increased and lease terms are optimized.
Strategic Location in North Rhine-Westphalia
Mönchengladbach is located in the heart of North Rhine-Westphalia, Germany’s most populous state and a hub for industrial and commercial activity. The site benefits from excellent transport connectivity to Düsseldorf, Cologne, and Duisburg.
Sirius already manages multiple business parks in the region, and the proximity of this new asset supports efficient operations, portfolio synergies, and cross-selling opportunities among tenants.
Broader Investment Context
The purchase forms part of a broader investment initiative by Sirius Real Estate. Of the €181 million raised in mid-2024, the company has now deployed €118 million across six high-yielding properties in Germany. These assets generate a combined annual rental income of €8.5 million.
Sirius retains the financial capacity to invest an additional €100 million while staying within its target loan-to-value ratios, ensuring flexibility for future acquisitions in a disciplined manner.
Asset Rotation: UK Divestment Strategy
Alongside its expansion in Germany, Sirius continues to streamline its UK portfolio. The company has sold its BizSpace property in Cardiff for €5.9 million, achieving a 10 percent premium over book value. This marks the fourth UK asset sale in the current financial year, with an average sale premium of 13.5 percent.
This ongoing portfolio optimization supports Sirius’ goal of focusing capital on core growth regions while exiting lower-performing assets.
Conclusion
The €17 million acquisition in Mönchengladbach marks another step in Sirius Real Estate’s strategic expansion in Germany. The property offers strong current income and meaningful upside through leasing and operational improvement.
At the same time, the company’s disciplined divestment of non-core assets in the UK reflects a clear focus on long-term portfolio quality and geographic positioning. With a robust investment pipeline and proven management capabilities, Sirius Real Estate continues to deliver sustainable growth and value for its stakeholders.
