Sirius Real Estate has completed the acquisitions of two industrial assets - in Banbury, just north of Oxford, and Wembley, for just over €36.3m, representing a 9.2% net initial yield (NIY) including acquisition costs.
The acquisitions will add more than 45,700m2 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 €40.1m in March 2024.
The Banbury acquisition comprises the c. 44,000m2 Beaumont Industrial Estate, which has exchanged for c. €29.6m (excluding acquisition costs), reflecting a NIY of 9.1%. The freehold asset, which is fully let to two tenants on Full Repairing.
The second asset comprises a light industrial multi-let building in Wembley, which has exchanged for just under c. €7.4m (excluding acquisition costs), reflecting a NIY of 9.3%. The property is freehold and spans 1,779m2 of lettable space. 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.
Both of the assets are located in highly desirable locations and benefit from good transport networks and connectivity, with the Wembley asset located within c. 8km of Bizspace in Perivale, enabling the Company to leverage a number of operational synergies alongside its local market expertise.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “These acquisitions present the Company with a number of value-add opportunities to utilise the Sirius platform to grow income and value across two strategic locations in the U.K., including one in which we already have an established presence. Additionally, the strategic disposal of two non-core U.K. sites, which when combined, were achieved at a modest premium to book value, allows us to crystallise returns from these assets which we will look to recycle into sites with larger scale and more opportunity. We are continuing to make good progress on our acquisition pipeline, following on from six months of active investments in both Germany and the U.K.. The Company’s bond tap of its 1.75% corporate bond due in November 2028, alongside advanced discussions on additional opportunities, leaves us well funded and well-placed to support the further long-term growth of the Group.”
Image provided by FTI Consulting.
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