SIRIUS REAL ESTATE
LIMITED
(Incorporated
in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54
12 March 2025
Sirius Real Estate
Limited
("Sirius Real Estate", "Sirius", the
"Company" or the "Group")
Sirius exchanges contracts to acquire
Southampton Business Park with development opportunity and solar
facility for £40.5 million
Sirius 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 continued to deploy the proceeds of its approximately £152
million (€181 million) capital raise last July, having exchanged
contracts to acquire an established business park with further
development opportunity in Southampton. The Company has
agreed to acquire Chalcroft Business Park for £36.5 million,
representing a net initial yield of 5.5%, as well as an adjoining
4.5 acre piece of development land with outline planning
permission, for £4.0 million.
Chalcroft Business Park comprises 267,073 sq ft
of predominantly warehousing space alongside 126,511 sq ft of
outdoor industrial storage. The 56-acre site also includes a
1.2-acre solar farm, benefiting from a 2013 government Feed-in
Tariff (FIT) expiring in 2038 which produces a third of the
estate's power requirements and will support Sirius's
sustainability targets. The freehold asset is 80% occupied, with
the only two vacant units having recently reached practical
completion following an extensive refurbishment to a high
specification, including solar panelled roofs.
Chalcroft Business Park benefits from a
strategic location just north of Southampton, with direct access to
the M27 motorway connecting to Junction 14 of the M3. Southampton
is a leading commercial centre and primary logistics hub on the
English South Coast thanks to the city's excellent road, port, rail
and air connectivity. The well-maintained site is also
adjacent to One Horton Heath, which is a large mixed use
development that includes 2,500 planned new homes. The asset will
be operated by Sirius's U.K. operating platform, BizSpace, and is
complementary to the Company's existing site in nearby
Fareham.
The business park currently produces a net
operating income of £2.1 million, with a WAULT of 4.0 years to
break, while the vacant units should add a further £500,000 to the
rent roll once let. The main estate also presents a number of
opportunities for further development including planning consent
for approximately 69,000 sq ft of new industrial space with the
potential to deliver £800,000 of additional rental income.
Sirius has also identified scope to drive value across the
rest of the estate by utilising its asset management platform to
enhance occupancy and income, capturing the clear reversionary
potential.
The land plot adjacent to the main estate that
has also been acquired has outline planning permission for
approximately 40,000 sq ft of commercial space, providing a further
development opportunity in the future.
Since its equity raise last July, Sirius has
successfully acquired over €100 million of income producing
properties at an attractive 7.1% average yield. Comprising assets
in Carnforth, Munich, Reinsberg, Oldham and now Chalcroft, these
acquisitions will add €7.1 million to the Company's annual FFO run
rate, once complete.
Andrew Coombs,
Chief Executive Officer of Sirius Real Estate,
commented: "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. Since our equity raise
last July, we have continued to acquire properties at attractive
yields, demonstrating our ability to identify and secure strategic
opportunities that drive rent roll growth and, in many cases, also
offer interesting additional development opportunities. With a
robust and active pipeline of prospects across the U.K. and
Germany, as well as additional capital available for investment, we
remain well positioned to complete the acquisition programme
initiated last summer."
ENDS
For further
information:
Sirius Real
Estate
Andrew Coombs, CEO / Chris Bowman,
CFO
+44 (0) 20 3059 0855
FTI
Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney / James
McEwan
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com
NOTES TO EDITORS
About Sirius Real Estate
Sirius is a property company listed on the
equity shares (commercial companies) category of the London Stock
Exchange and the premium segment of the main board of the JSE
Limited. It is a leading owner and operator of branded business and
industrial parks providing conventional space and flexible
workspace in Germany and the U.K. As of 30 September 2024, the
Group's owned portfolio comprised 145 assets let to 10,025 tenants
with a total book value of €2.4 billion, generating a total
annualised rent roll of €214 million. Sirius also holds a 35% stake
in Titanium, its €350+ million German-focused joint venture with
clients of AXA IM Alts.
The Company's strategy centres on acquiring
business parks at attractive yields and integrating them into its
network of sites - both under the Sirius and BizSpace names and
alongside a range of branded products. The business then seeks to
reconfigure and upgrade existing and vacant space to appeal to the
local market via intensive asset management and investment and may
then choose to refinance or dispose of assets selectively once they
meet maturity, to release capital for new investment. This active
approach allows the Company to generate attractive returns for
shareholders through growing rental income, improving cost
recoveries and capital values, and enhancing returns through
securing efficient financing terms.
For more information, please
visit: www.sirius-real-estate.com
Follow us on LinkedIn
at https://www.linkedin.com/company/siriusrealestate/
Follow us on X (Twitter) at
@SiriusRE
JSE Sponsor
PSG Capital
