Sirius Real Estate has acquired Chalcroft Business Park near Southampton for £36.5m in a deal representing a net initial yield of 5.5%.
The company has also acquired an adjoining 4.5-acre development site with outline planning permission for £4m.
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 expiring in 2038, which produces a third of the estate’s power requirements.
The freehold asset is 80% occupied and the two vacant units have recently been extensively refurbished to a high specification.
The main estate 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.
The plot of land acquired adjacent to the main estate has outline planning permission for approximately 40,000 sq ft of commercial space. The asset will be operated by Sirius’ UK operating platform BizSpace.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “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 UK and Germany, as well as additional capital available for investment, we remain well positioned to complete the acquisition programme initiated last summer.”
