Business
Sirius completes on £31m of U.K. acquisitions
Sirius completes on £31m of U.K. acquisitions.
About this update from Sirius Real Estate Limited
[{"type":"text","content":"\n\nSIRIUS REAL ESTATE LIMITED\n(Incorporated in Guernsey)\nCompany Number: 46442\nJSE Share Code: SRE\nLSE (GBP) Share Code: SRE\nLEI: 213800NURUF5W8QSK566\nISIN Code: GG00B1W3VF54\n \n20 June 2024\nSirius Real Estate Limited\n(\"Sirius Real Estate\", \"Sirius\", the \"Company\" or the \"Group\")\n \nSirius Real Estate completes on c. £31 million of acquisitions and disposes of two assets in the U.K.\n \nSirius Real Estate, the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the U.K., has completed on the acquisitions of two industrial assets in the U.K., in Banbury, South East England, and Wembley, for just over £31 million, representing a 9.2% net initial yield (\"NIY\") including acquisition costs.\n \nThe acquisitions will add more than 492,000 sq ft of light industrial space to the Group's U.K. portfolio, and have been made using the proceeds of the recent Maintal disposal, which was sold at a gross yield of 6% for €40.1 million in March 2024.\n \nThe Banbury acquisition comprises the c. 473,000 sq ft Beaumont Industrial Estate, which has exchanged for £25 million (excluding acquisition costs), reflecting a NIY of 9.1%. The freehold asset, which is fully let to two tenants on Full Repairing and Insuring leases, produces a net operating income of £2.4 million per annum at an average rate of £5.15 psf, with both leases expiring in July 2027. Both tenants are expected to extend their leases given the significant investment in production equipment on site by each tenant.\n \nThe second asset comprises a light industrial multi-let building in Wembley, which has exchanged for just under £6.3 million (excluding acquisition costs) reflecting a NIY of 9.3%. The property is freehold and spans 19,145 sq ft of lettable space. At almost 100% occupancy, the asset currently generates a net operating income of £624,000. Privately owned and operated, and situated at the northern end of Water Road, approximately 6 miles west of Central London, the site is strategically located to complement a trio of properties that the Company recently acquired in Islington. The current owner purchased the vacant property three years ago and converted the building into 65 workspaces targeting SMEs.\n \nBoth of the assets are locate...