Brexit negotiations have bolstered fringe European markets, Sirius has said after completing its first deal of the year.
The London-listed operator of German business parks, which announced its acquisition of the €9.2bn Krefeld Business Park outside Dusseldorf today, said that the EU referendum sent “ripples” through German markets with expectations of a rise in demand and costs in city centres.
As a result, occupiers such as the German government are looking at peripheral locations for better value.
Andrew Coombs, chief executive of Sirius, said: “What we are seeing is an expectation from some key towns in the west that is causing German landlords to clear space in the centre of town. They’re encouraging people out of the centre of cities like Dusseldorf to the periphery – where places like Krefeld come in.
“If you are part of the government and in the centre of town, you are anticipating that prices are going up in the centre and are taking the opportunity right now to move to the edge.”
Sirius moved to the main market of the London Stock Exchange last March and completed €209m of acquisitions and disposals in 2017. Coombs said he expects the company to be as active in 2018.
The company targets value-add assets with net initial yields of about 8% and vacancy rates of about 30%.
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