Looks more like the plastic filler/top up tank has blown apart, these are a known weak point on BMW's they either develop splits or holes or as in your case blows apart. The plastic just ages and becomes brittle, mine developed a small hole in its side, spotted it before it got bigger and failed completely. Replacements on ebay and on Autodoc think I paid around £20 for my replacement. Its fairly easy to change takes longer to refill and bleed the system.
My 1999 1.8 Z3 parts details on Realoem site here, use your Vin Number to check whats fitted to yours on the first page.
BMW parts Z3 E36 Z3 1.9 Radiator
www.realoem.com