Sirius Real Estate, a leading owner of business and industrial parks, announced major UK acquisitions. The company spent over £31 million on two industrial assets.
Details of Acquisitions
Sirius acquired two UK industrial assets in Banbury and Wembley. These acquisitions will add over 492,000 sq ft of light industrial space to Sirius’s UK portfolio.
| Asset Location | Acquisition Cost (£ million) | Net Initial Yield (NIY) | Space (sq ft) | Net Operating Income (£ million) |
|---|---|---|---|---|
| Banbury | 25 | 9.1% | 473,000 | 2.4 |
| Wembley | 6.3 | 9.3% | 19,145 | 0.624 |
Banbury Acquisition
The Banbury acquisition is the Beaumont Industrial Estate, exchanged for £25 million. This reflects a 9.1% NIY. The estate is fully let to two tenants on Full Repairing and Insuring leases. These leases generate £2.4 million per annum at £5.15 psf. Both leases expire in July 2027, and tenants are likely to extend.
Wembley Acquisition
The Wembley property, a multi-let light industrial building, exchanged for £6.3 million. This reflects a 9.3% NIY. The freehold property spans 19,145 sq ft of lettable space and is nearly fully occupied. The asset generates £624,000 in net operating income. It is located at the northern end of Water Road, 6 miles west of Central London.
Strategic Importance
Both assets are in prime locations with excellent transport links. The Wembley asset complements three recently acquired properties in Islington. Sirius expects to drive value through these assets via its asset management platform.
Disposals of Non-Core Assets
Sirius also announced the notarised disposals of two non-core UK assets. These assets are located in Hartlepool and Letchworth, sold for a combined £1.9 million. The assets span 60,500 sq ft and were sold at a 2.7% premium to book value.
Table: Disposed Assets
| Location | Combined Sale Price (£ million) | Space (sq ft) | Premium to Book Value (%) |
|---|---|---|---|
| Hartlepool | 1.9 | 60,500 | 2.7% |
| Letchworth |
CEO Commentary
Andrew Coombs, CEO of Sirius Real Estate, commented on the acquisitions and disposals. He highlighted the value-add opportunities and strategic importance of the new assets. He also noted the successful disposal of non-c