12th Mar 2025 12:12
(Alliance News) - Sirius Real Estate Ltd on Wednesday announced its acquisition of Chalcroft Business Park in England for GBP36.5 million.
The London and Johannesburg-listed property investor said it used money from its approximately GBP152 million capital raise in July to buy the site, which is "complementary" to its nearby existing site in Fareham.
Chalcroft, in Southampton, is "an established business park with further development opportunity" comprising warehouse and outdoor industrial storage space, as well as a 1.2 acre solar farm which fulfils one third of its power requirements.
Sirius' UK platform BizSpace will operate the site.
Sirius added that the GBP36.5 million consideration represents a net initial yield of 5.5%. Also, the deal includes paying GBP4.0 million for an adjoining 4.5-acre piece of development land with outline planning permission.
The freehold asset is 80% occupied, Sirius said, with the only two vacant units having recently reached practical completion following an extensive refurbishment.
It added that the business park benefits from its strategic location just north of "leading commercial centre and primary logistics hub" Southampton with direct motorway access.
Furthermore, Chalcroft currently produces a net operating income of GBP2.1 million with the vacant units expected to add another GBP500,000 to the rent roll once let, Sirius said.
"The acquisition of Chalcroft Business Park adds a strong, income-generating asset to our portfolio...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," commented Chief Executive Officer Andrew Coombs.
He continued: "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."
Shares in Sirius Real Estate rose 0.7% to 82.65 pence in London on Wednesday. They gained 2.0% to trade at ZAR19.68 each in Johannesburg.
By Emma Curzon, Alliance News reporter
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