Sirius Real Estate has acquired two industrial assets in Banbury and Wembley for just over £31m.
Sirius has purchased the circa 473,00 sq ft Beaumont Industrial Estate in Banbury for £25m, in a deal reflecting a net initial yield (NIY) of 9.1%. The freehold asset is let to two tenants on leases expiring in July 2027 and produces a net operating income of £2.4m per annum. Both tenants are expected to extend their leases.
The second asset comprises a light industrial multi-let building in Wembley (pictured), which has exchanged for just under £6.3m, in a deal reflecting a NIY of 9.3%. The 19,145 sq ft freehold property is at almost 100% occupancy and generates a net operating income of £624,000.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “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. Additionally, the strategic disposal of two non-core UK sites, which when combined, were achieved at a modest premium to book value, allows us to crystallise returns from these assets which we will look to recycle into sites with larger scale and more opportunity.
“We are continuing to make good progress on our acquisition pipeline, following on from six months of active investments in both Germany and the UK. The company’s bond tap of its 1.75% corporate bond due in November 2028, alongside advanced discussions on additional opportunities, leaves us well funded and well placed to support the further long-term growth of the group.”
