Dawnay buys business parks in Germany

The company, which buys large mixed-use properties and then upgrades them into flexible workspaces, has completed deals on a portfolio and three individual business parks.

It paid €98m (£77m) for the Siemens Gewerbepark portfolio of five business parks, at an initial yield of 8.2%, and €18m (£14m) for a further two business parks in Kassel and Pfungstadt.

Siemens, which sold the larger portfolio to Dawnay, will continue to occupy 48% of the space. The remaining space is let to 30 tenants, with 213,555 sq ft vacant for immediate refurbishment. Dawnay is also planning to build a further 260,000 sq ft on the land it has bought.

The business parks in Kassel and Pfungstadt were bought separately at a net initial yield of 7.7%.

Dawnay also bought its second base in Dusseldorf, a business park, for €5.5m (£4m).

Kevin Oppenheim, chief executive officer of Dawnay, Day Sirius, said: ‘With significant anchor tenants in place they will generate strong and stable cash flows providing us with the financial base to exploit their true potential.

'These acquisitions further cement our position as the leading national operator of branded business parks for the German SME occupier market with 38 business parks in 26 locations across Germany.’

The deals were funded with cash and a new debt facility.

The company has also drawn down €101 million (£80m) on a new facility with Berlin Hyp, secured against seven assets bought in 2007.

The company now owns around €530 million of its target €750 million of German property assets.