Sirius Real Estate expands UK portfolio with £48.25m acquisition

Sirius Real Estate has acquired Vantage Point Business Village, a multi-let business park in Gloucestershire, for £48.25m (€56.4m), representing a net initial yield at acquisition of 10.2%.

The acquisition was made using the proceeds of the company’s £147m capital raise in November 2023.

The company has bought four assets so far this year, following the purchases of business and industrial parks in Köln, Göppingen and Klipphausen for around €53.75m in aggregate.

Through this purchase, Sirius will add more than 1.5 million sq ft of space to its BizSpace portfolio, of which over 1 million sq ft is industrial space.

The 60-acre business park at Mitcheldean was renowned first for manufacturing Rank projection equipment then as Rank Xerox’s manufacturing hub between 1961 and 2003. It is 81% occupied and offers a mixture of warehouse, production, storage, conventional and serviced office space to over 70 companies across 119 units.

Sirius has identified a number of opportunities to drive value by utilising its asset management platform to improve occupancy, income and service charge recovery. The total acquisition cost includes a £1.25m deferred element which is conditional on certain events taking place within nine months of completion.

As part of the acquisition, Sirius has also acquired a PV solar business from the vendor which currently supplies most of the electricity to the site from panels installed on certain buildings, providing energy security and an attractive income stream.

Sale completes

Separately, Sirius has completed on the previously announced disposal of an industrial park in Maintal, in Germany’s southwest Hesse region, for €40.1m (£34.3m), representing a net initial yield of 5.7%.

The asset, which comprises 37,830 sqm of logistics, office and industrial space, was sold at an approximate 6% premium to the last reported book value.

Andrew Coombs, chief executive, commented:

“This sizeable strategic acquisition is transformational for our UK BizSpace platform, and increases its portfolio by over 1.5 million sq ft. The 60-acre park generates strong day-one cash flow from a stable, diversified tenant base and offers various synergies with our existing assets in the local area. It also presents a number of value creation opportunities by driving both occupancy and rental income.

“Additionally, the completion of the Maintal disposal at a premium to book value allows us to capitalise on demand for this high-quality property and continue to crystallise returns from our mature portfolio. It also provides us further flexibility to recycle capital into new opportunities within our existing portfolio, as well as into our pipeline of acquisitions, alongside the proceeds of November’s £147m (€165m) equity raise. We have now committed to over £135m (€155m) of acquisitions since November and are continuing to actively seek future opportunities where we see the chance to create value, leaving us well placed to support the continued long-term growth of the group.”

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