Sirius Real Estate acquires Chalcroft Business Park for £36.5 million

LONDON: Sirius Real Estate, a leading owner and operator of branded business and industrial parks in Germany and the U.K., has acquired Chalcroft Business Park in Southampton for £36.5 million. This acquisition follows their £152 million capital raise last July.

Chalcroft Business Park spans 56 acres and includes 267,073 sq ft of warehousing space, 126,511 sq ft of outdoor industrial storage, and a 1.2-acre solar farm that provides one-third of the estate’s power. The site is 80% occupied, with two recently refurbished vacant units featuring solar-panelled roofs.

Strategically located just north of Southampton, the business park offers direct access to the M27 motorway and is adjacent to the One Horton Heath development, which plans 2,500 new homes. The site will be managed by Sirius’s U.K. platform, BizSpace, and complements their existing site in nearby Fareham.

Currently, the business park generates a net operating income of £2.1 million, with an additional £500,000 expected from the vacant units once let. The main estate has planning consent for approximately 69,000 sq ft of new industrial space, potentially delivering £800,000 in rental income. Sirius plans to enhance occupancy and income through asset management.

Additionally, Sirius acquired a 4.5-acre plot of development land adjacent to Chalcroft Business Park for £4.0 million. This land has outline planning permission for 40,000 sq ft of commercial space, providing future development opportunities.

Since last July’s equity raise, Sirius has acquired over €100 million of income-producing properties, adding €7.1 million to the company’s annual FFO run rate. These acquisitions include assets in Carnforth, Munich, Reinsberg, Oldham, and now Chalcroft.

Andrew Coombs, CEO of Sirius Real Estate, stated, “The acquisition of Chalcroft Business Park adds a strong, income-generating asset to our portfolio, with strong sustainability credentials and significant potential for further value creation. By leveraging the combined expertise of the Sirius and BizSpace platforms, we aim to enhance existing revenues while unlocking new income streams through hands-on asset management and development.”

With a robust pipeline of prospects in the U.K. and Germany and additional capital available for investment, Sirius continues to pursue strategic opportunities that drive rent roll growth and development potential.