Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has acquired two industrial sites - in Banbury and Wembley - for just over £31 million.
Acquired on a 9.2% net initial yield (NIY) including acquisition costs, the new sites will add more than 492,000 sq ft of light industrial space to its UK portfolio.
Banbury, the largest site, comprises the 473,000-square-foot Beaumont Industrial Estate and was purchased for £25 million (excluding acquisition costs), reflecting a NIY of 9.1%.
The freehold asset, fully let to two tenants on full repairing and insuring leases, produces a net operating income of £2.4 million per annum at an average rate of £5.15 per square foot. Both leases expire in July 2027.
The Wembley property comprises a light industrial multi-let building, bought for just under £6.3 million (excluding acquisition costs) reflecting a NIY of 9.3%. The property is freehold and spans 19,145 sq ft of lettable space.
At almost 100% occupancy, the asset currently generates a net operating income of £624,000.
Both of the assets are located in highly desirable locations and benefit from good transport networks and connectivity, Sirius added.
Separately, the company said it had notarised the sale of two sub-scale UK assets in Hartlepool and Letchworth for a combined total of £1.9 million.
The assets, which comprise just over 60,500 square feet of space, were sold at a combined 2.7% premium to the last reported book value.
Andrew Coombs, chief executive, added: "These acquisitions present the company with several value-add opportunities to utilise the Sirius platform to grow income and value across two strategic locations in the UK.
“Additionally, the strategic disposal of two non-core U.K. sites, which when combined, were achieved at a modest premium to book value, allows us to crystallise returns from these assets which we will look to recycle into sites with larger scale and more opportunity."