Sirius Real Estate, a FTSE 250 firm, has acquired a German business park in Kiel for €93.6mn, part of a broader strategy to invest €1bn in the defense sector over 18 months. The property, leased primarily to defense giant Rheinmetall, specializes in electrical systems for land vehicles. This move follows Sirius’s €170mn in prior defense real estate deals across the UK and Germany, with plans to double that figure soon.

CEO Andrew Coombs highlighted the sector’s “dire needs for property,” emphasizing acquisitions focused on manufacturing and research sites excluding explosive materials. Rheinmetall, with a €64bn order backlog and 40% sales growth forecast, exemplifies the booming demand. The firm’s £77mn February fundraise, four times oversubscribed, signals investor confidence amid rising European defense spending. Coombs also called for UK defense innovation bonds, mirroring WWII-era models, as global alliances shift post-Russia and Iran conflicts.