Peel Hunt sees the potential to ‘drive enhanced returns’ from two properties bought by Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) for £31 million.
The two industrial sites – in Banbury and Wembley in West London – were acquired with a net initial yield of 9.2%.
“Although today's assets are high yielding, we expect that Sirius' platform will be able to drive enhanced returns, through a combination of platform synergies, driving rate and occupancy forward, and reducing cost leakage,” said the City broker in a note to clients.
Peel repeated its ‘buy’ advice and 115p a share price target. In early afternoon trading the stock was up 1% at 97.4p