Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF), the specialist in the branded business and industrial parks sector in Germany and the UK, has embarked on another leg of what it calls its recycling programme with a sale and purchase of properties.
The former first: Sirius has offloaded its business park in Kassel, Germany, for €7.3 million, representing a net initial yield (NIY) of 6%.
Sirius received a 5% premium over the asset's book value as of March 2023, which was €6.95 million.
Kassel, with a 92% occupancy rate, covers a total lettable area of 8,342 square metres and includes industrial, office, logistics and other spaces. It sits on a 16,217 square-metre plot.
At the same time, the company completed the acquisition of two mixed-use industrial assets in Liverpool and Barnsley, UK, for £9.5 million.
These assets, which will be part of Sirius's BizSpace subsidiary, have a combined area of 71,957 square feet, mostly comprising workshop space. The purchase was made at a NIY of 9.6%, including the total acquisition cost.
Both transactions are part of the company's ongoing asset recycling strategy, aimed at optimising its property portfolio for better returns.
The asset recycling programme is a key part of Sirius Real Estate's long-term strategy to focus on high-yield properties while divesting less profitable ones.
This approach is in line with the company's vision to provide both conventional and flexible workspace solutions in key markets.