Sirius Real Estate Ltd has expanded its UK portfolio with the £48.25 million acquisition of Vantage Point Business Village in Gloucestershire.
This encompasses over 1.5 million square feet of warehouse, production and storage space, while also including a solar business which supplies most of the site’s electricity.
“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,” chief executive Andrew Coombs commented in a statement.
Vantage Point offers a net initial yield at acquisition of 10.2% and marks the firm’s fourth acquisition of the year, after business park purchases in Köln, Göppingen and Klipphausen.
The acquisition was funded using proceeds of Sirius’ £147 million capital raise in November.
“It also presents a number of value creation opportunities by driving both occupancy and rental income,” Coombs said, with the site currently 81% occupied.
Sirius also confirmed the disposal of the Maintal industrial park in southwest Germany for €40.1 million (£34.3 million), meanwhile, at a 6% premium to its last book value.
This provides “further flexibility to recycle capital into new opportunities within our existing portfolio, as well as into our pipeline of acquisitions,” Coombs added.