Sirius Real Estate is to acquire Chalcroft Business Park and an adjoining piece of development land with outline planning permission for £40.5m.
The owner and operator of branded business and industrial parks in Germany and the UK had exchanged contracts to acquire Chalcroft Business Park for £36.5m, representing a net initial yield of 5.5%, as well as an adjoining 1.8ha piece of development land for £4m, it said on Wednesday.
“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,” said CEO Andrew Coombs.
Chalcroft Business Park comprises 8,1403.85m2 of predominantly warehousing space alongside 3,8560.55m2 of outdoor industrial storage. The 22.66ha site also includes a 0.5ha solar farm, 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 after an extensive refurbishment to a high specification, including solar panelled roofs.
The asset will be operated by Sirius’ UK operating platform, BizSpace, and is complementary to the company’s existing site in nearby Fareham.
The business park produced a net operating income of £2.1m at present, while the vacant units should add a further £500,000 to the rent roll once let, it said.
Since its equity raise last July, Sirius has acquired more than €100m of income-producing properties at an attractive 7.1% average yield.
“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,” said Coombs.
“With a robust and active pipeline of prospects across the UK and Germany, as well as additional capital available for investment, we remain well positioned to complete the acquisition programme initiated last summer,” he said.
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