Sirius Real Estate Limited (LON:SRE), the leading owner and operator of branded business and industrial parks providing conventional space and flexible workspace in Germany and the UK, has completed the acquisition of a multi-let light industrial park in Carnforth, Lancashire, for £9.05 million, representing an 11.4% net initial yield including acquisition costs. The park is just north of Lancaster and is 3 miles from the M6 motorway with excellent connections to Scotland and to the south.
The acquisition will add 172,152 sq ft of light industrial space to the Group’s U.K. portfolio, and has been made using proceeds of the recent capital raise in July.
This freehold asset is fully let to eight tenants on FRI (full repairing and insuring) leases. It produces a net operating income of £1.1 million per annum at an average rate of £6.47 psf, with a WAULT of 5.6 years to expiry (2.9 years to break). The site comes with planning permission for approximately 35,000 sq ft of new industrial space.
In addition, Sirius Real Estate has completed the €3 million acquisition of a circa nine acre (35,894 sqm) strategic land parcel adjacent to its 77,600 sqm Oberhausen multi-use business park in the Ruhr area of northwest Germany, providing the opportunity to expand the park through a potential development.
Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: “We are continuing to make good progress on our acquisition pipeline, following on from 12 months of active investments in both Germany and the U.K. The Carnforth acquisition presents the Company with a number of value-add opportunities to utilise the Sirius platform to grow the income and value of the asset. In addition, both Carnforth and the land that we have acquired beside our Oberhausen site offer interesting development potential to add further industrial space.”
