REG - Sirius Real Estate - Sirius agrees to acquire Southampton Business Park

Sirius Real EstateAnnouncement

12/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250312:nRSL2730Aa&default-theme=true

RNS Number : 2730A  Sirius Real Estate Limited  12 March 2025

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
(http://www.sirius-real-estate.com/)

 

Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/
(https://www.linkedin.com/company/siriusrealestate/)

 

Follow us on X (Twitter) at @SiriusRE

 

JSE Sponsor

PSG Capital

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQGPUMCWUPAPUG