Sirius Real Estate has acquired Bedford Heights multi-let business park in an off-market deal for £16.3m.
The 238,000 sq ft multi-let business park comprises warehouse, leisure, studio and office space and has a three-acre car park.
The asset is 96% occupied and generates a net operating income of £1.54m and a WAULT of 6.05 years to expiry. The transaction reflects an EPRA net initial yield of 9.52% after acquisition costs.
Sirius said 67% of the park’s tenants had lease events within the next two years, presenting reversionary and asset management opportunities, including the potential for future multi-let industrial development.
The company has also acquired a business park in Dresden, Germany, for €23.4m.
Andrew Coombs, chief executive officer of Sirius Real Estate, said: “These two latest acquisitions represent strong additions to our German and UK portfolios, being immediately cash generative whilst benefitting from clear value-add potential, and secured at attractive entry yields. The acquisition of Dresden business park strengthens our presence in a region enjoying substantial inward investment, particularly in the high-growth semiconductor sector.
“Bedford Heights also closely aligns with our strategic focus on the defence sector, with over one-third of the current tenant base operating in this space and further growth opportunities identified. Following last year’s successful equity raise and bond issuances, along with our recently secured €150m unsecured revolving credit facility, we are strongly capitalised and well-positioned to continue executing accretive acquisitions across the UK and Germany, with these latest transactions a clear demonstration of our sourcing capabilities.”
