Sirius Real Estate (LSE:SRE) has completed the acquisition of a light-industrial business park in Fulda, north east of Frankfurt, for total acquisition costs of €49.8 million.
The company, which owns and operates branded business and industrial parks offering conventional space and flexible workspace across Germany and the UK, noted that the Fulda site spans 57,771 square metres of lettable space, on a 112,867 square metre plot, fully let and generating an annual rent roll of approximately €3.93 million.
The weighted average lease expiry stands at 5.1 years, and the purchase price reflects an EPRA net initial yield (a standardised measure of property income return) of 7.8%.
The park is anchored by a leading European manufacturer of ballistic protection equipment, including bullet-proof vests, serving military, police and law enforcement customers, which has occupied the site since 2014.
The tenant supplies the German Armed Forces' MOBAST programme, under which more than 300,000 modular ballistic protection vest systems have been ordered, alongside follow-on contracts for German Special Forces and other European military and law enforcement buyers.
Chief executive Andrew Coombs said the acquisition strengthens Sirius' German portfolio and offers "a very attractive risk/return relationship" that supports continued dividend progression. He added that the deal reflects a "first mover advantage" in assets aligned with structural growth in government-backed defence spending.
News Intelligence what this means for the company
Sirius Real Estate has completed a €49.8 million acquisition of a fully-let German business park anchored by a ballistic protection equipment manufacturer supplying the German Armed Forces' MOBAST programme. The 7.8% net initial yield and 5.1-year weighted average lease expiry offer income stability, while the tenant's exposure to government-backed defence spending aligns with CEO Andrew Coombs' stated strategy of capturing structural growth in that sector. The deal follows a €185.1m note placement in June 2026, suggesting the company has deployed capital raised to fund acquisitions in line with its European portfolio expansion.
The acquisition demonstrates execution on a stated thesis—defence-anchored assets in growth markets—and adds a stable, fully-let income stream at a yield above typical European logistics benchmarks.
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