LONDON: Sirius Real Estate, a prominent player in the German and UK business park sector, has marked its first UK property acquisition this year with the purchase of Vantage Point Business Village in Gloucestershire for £48.25 million (€56.4 million), reflecting a 10.2% initial yield. This move follows the company’s £147 million capital raise last November.
The business park, spanning 60 acres and known for its historical manufacturing significance, adds over 1.5 million sq ft to Sirius’s BizSpace portfolio, enhancing its industrial space offerings. Currently 81% occupied, the park houses over 70 companies and presents multiple value-boosting opportunities through improved occupancy and income.
Additionally, Sirius acquired a solar business as part of the deal, contributing to the site’s energy security and revenue.
Strategically located near major cities and transport links, the park’s acquisition is complemented by the sale of a German industrial park in Maintal for €40.1 million (£34.3 million), a transaction in line with Sirius’s asset capital recycling strategy to foster growth and value.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “This sizeable strategic acquisition is transformational for our U.K. 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 £147 million (€165 million) equity raise.
We have now committed to over £135 million (€155 million) 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.”
The Group looks forward to providing its customary year-end trading update on 15 April 2024, following the end of the Company’s financial year.