Sirius to acquire Gloucestershire business park for £48m

Sirius Real Estate, which owns and operates branded business and industrial parks in Germany and the UK, has exchanged contracts on the acquisition of Vantage Point Business Village for £48.25m.

Vantage Point Business Village is a multi-let business park in Gloucestershire. The acquisition price represents a net initial yield at acquisition of 10.2%.

The acquisition has been made using the proceeds of the company’s £147m capital raise, which it completed in November.

The acquisition represents the first asset in the UK and the fourth asset in total acquired by Sirius in 2024, after the purchases of business and industrial parks in Köln, Göppingen and Klipphausen for about €53.75m.

“This sizeable strategic acquisition is transformational for our UK BizSpace platform, and increases its portfolio by over 1.5 million square foot. The 60-acre park generates strong day-one cash flow from a stable, diversified tenant base and offers various synergies with our existing assets in the local area. It also presents a number of value creation opportunities by driving both occupancy and rental income,” said CEO Andrew Coombs.

The business park is 81% occupied and offers a mixture of warehouse, production, storage, conventional and serviced office space to more than 70 companies across 119 units.

Sirius has identified a number of opportunities to drive value by using its asset management platform to improve occupancy, income and service charge recovery.

As part of the acquisition, Sirius has also acquired a PV solar business from the vendor that supplies most of the electricity to the site from panels installed on certain buildings, providing energy security and an attractive income stream.

Situated in a highly desirable location on the edge of The Forest of Dean, and close to a number of major cities, including Bristol, Gloucester and Cardiff, the park benefits from good transport networks and connectivity to the national motorway network.

The company also announced it had completed the previously announced disposal of an industrial park in Maintal, in Germany’s southwest Hesse region, for €40.1m, representing a net initial yield of 5.7%.

“The completion of the Maintal disposal at a premium to book value allows us to capitalise on demand for this high-quality property and continue to crystallise returns from our mature portfolio,” said Coombs.

“It also provides us further flexibility to recycle capital into new opportunities within our existing portfolio, as well as into our pipeline of acquisitions, alongside the proceeds of November’s £147m equity raise.” 

“We have now committed to over £135m of acquisitions since November and are continuing to actively seek future opportunities where we see the chance to create value, leaving us well placed to support the continued long-term growth of the group,” he said.

mackenziej@arena.africa