Sirius Real Estate to acquire Southampton business park
Property investor said on Wednesday that it has exchanged contracts to acquire a Southampton business park for £40.5m.
Sirius Real Estate said it was continuing to deploy the proceeds of its approximately £152.0m capital raise in July 2024, having exchanged contracts to acquire an established business park with further development opportunities in Southampton.
The FTSE 250-listed firm has agreed to acquire Chalcroft Business Park for £36.5m, representing a net initial yield of 5.5%, as well as an adjoining 4.5-acre piece of development land with outline planning permission for £4.0m.
Sirius added that 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 and will support the company's sustainability targets.
The freehold asset is 80% occupied and currently produces a net operating income of £2.1m, with a WAULT of four years to break, while the vacant units should add a further £500,000 to the rent roll once let.
As of 1120 GMT, Sirius shares were up 0.55% at 82.50p.
Reporting by Iain Gilbert at Sharecast.com
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.