Sirius Real Estate, operator of branded business and industrial parks in the UK and Germany, has completed the sale of BizSpace Tyseley in Birmingham for £6.7m (R158m) after the business park’s maintenance was deemed too expensive.
The price represents a 20% premium to the book value of Tyseley Business Park, which SiriIus bought for £5.1m in November 2021 as part of its acquisition of office provider BizSpace.
The acquisition of BizSpace for £245m marked the beginning of Sirius’ presence in the UK property market, and in 2022 the group disposed of the BizSpace Camberwell asset in London for £16m, realising a 94% premium on the sale.
Sirius said significant future capital would need to be invested to maintain the buildings at Tyseley, a 12,450m2 business park comprising about 11,600m2 of industrial space and about 840m2 of office space.
The company said it felt this investment could be better spent elsewhere in its portfolio and emphasised the group’s success in growing Tyseley’s rent roll by 30%.
The sale highlights Sirius’ success in improving the rental since the BizSpace acquisition, said CEO Andrew Coombs.
“This transaction demonstrates our platform’s ability to attract higher-paying quality occupiers and effectively execute strategically timed deals, enabling efficient capital recycling into our acquisition pipeline,” Coombs said.
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