Sirius agrees to acquire Southampton Business Park
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
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