Sirius Real Estate is pleased to announce the acquisition of two multi-let business parks located in Aachen and Bonn for a total  of €21.8 million.

The Aachen business park is located in the expanding Würselen district, it has a total lettable area of 26,759 sqm and is currently 73% let to a mix-use of office and light industrial tenants.

The Bonn business park, has a total lettable area of 9,810 sqm and is currently 76% let to mix of office, service and retail businesses. These sites generate €2.2 million of annualised rental income and €1.9 million of net operating income at a combined EPRA Net Initial Yield of 9.02%*.

In both Aachen and Bonn there is significant scope to expand upon the existing tenant base where the Company sees excellent opportunity to invest in the vacant space and generate attractive returns from a mixture of conventional office and industrial space as well as its flexible workspace solutions.

Such "value-add" opportunities are a key element of Sirius's acquisition criteria. *Calculated as rental income less non recoverable service charge costs and landlord maintenance, over purchase price plus acquisition costs

The acquisitions were funded by the proceeds from the Company's recent €40 million Private Placement announced on 28 November 2014 and a drawdown of the remaining €9.9 million from its new €36 million, 5-year debt facility. The monies drawn down have a 2.85% fixed annual interest charge and an initial amortisation rate of 2.00% per annum. Taking account of the financing, the initial cash on cash return is 14.53%.

The Company has now completed the acquisition of the four key sites of the five targeted for a total consideration of €71m (including all costs) representing the majority of the €76 million acquisition portfolio referred to in our announcement on 28 November 2014. The remaining potential €4.5 million acquisition of a business park in Mahlow will not be proceeding and the Company is currently reviewing alternative acquisition opportunities.

Andrew Coombs, Chief Executive of Sirius, commented: 'Aachen and Bonn are two areas in which we have been looking to increase our presence for some time. Both are prosperous, well located, cities and are currently undersupplied in terms of good quality flexible workspace suitable for the SME market.

The Bonn site is adjacent to our existing site in Siemensstrasse and the acquisition significantly increases the scale of our offering there. As with our other two recently completed acquisitions, we are again able to take advantage of a significant yield gap making these transactions immediately earnings enhancing. In addition, we are confident we can enhance the vacant space and attract new tenants to further increase returns to shareholders."