Sirius Real Estate has exchanged contracts to dispose of two business parks in Sheffield and acquire three UK self-storage development sites.
In line with its strategy of recycling non-core UK assets, Sirius has sold the multi-use business parks in the Sheffield area to a single purchaser for a combined consideration of £5.3m, representing a 3% premium to book value. Sirius said both sites are stable and well occupied, but offer limited scope to drive further income or valuation growth.
The three self-storage development opportunities, which were acquired for approximately £12.6m, are located in Leicestershire, Bedfordshire and Merton and are subject to planning.
The site acquisition costs will be funded from the recycling of the Sheffield assets and the remaining £7.3m from further disposals of non-core UK assets expected this calendar year.
The Leicestershire and Bedfordshire assets will open in spring 2027 and the Merton site is expected to complete in 2028.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “The disposals, agreed at a premium to book value, demonstrate Sirius’s continued focus on disciplined capital recycling, crystallising value from smaller, mature assets where we see limited scope for further income or valuation growth and redeploying the proceeds into opportunities with stronger returns potential.
“The two self-storage conversion sites in Leicestershire and Bedfordshire are expected to open early in the next financial year, with all three acquisition opportunities representing an exciting further step in our self-storage strategy, as we expand on what is already an extensive, high-yielding and resilient part of our platform. These transactions are another example of the active asset management that underpins our ability to generate sustainable returns for shareholders.”
