Sirius Real Estate has completed on the acquisitions of two industrial assets in the UK, in Banbury, just north of Oxford, and Wembley, for just over £31 mln (€37 mln), representing a 9.2% net initial yield including acquisition costs.
The acquisitions will add more than 492,000 ft2 of light industrial space to the Group’s UK 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 mln in March 2024.
The Banbury acquisition comprises the 473,000 ft2 Beaumont Industrial Estate, which has exchanged for £25 mln (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 mln per annum, 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.
The second asset comprises a light industrial multi-let building in Wembley, which has exchanged for just under £6.3 mln (excluding acquisition costs) reflecting a NIY of 9.3%. The property is freehold and spans 19,145 ft2 of lettable space. At almost 100% occupancy, the asset currently generates a net operating income of £624,000. Privately owned and operated, 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.
Sirius said that it has identified a number of opportunities to drive value through the Banbury and Wembley assets by utilising its asset management platform to improve occupancy, income and service charge recovery.
Separately, the company announces that it has notarised the disposals of two sub scale assets located in Hartlepool and Letchworth, UK, for a combined total of £1.9 mln.
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 UK, including one in which we already have an established presence.'
