Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) has completed two acquisitions aimed at expanding its business and industrial park portfolio in the UK and Germany.
The company acquired a multi-let light industrial park in Carnforth, Lancashire, for £9.05 million, offering a net initial yield of 11.4%.
The asset, located near the M6 motorway, spans 172,152 square feet and is fully leased to eight tenants on full repairing and insuring (FRI) leases.
It generates a net operating income of £1.10 million annually, with an average rent of £6.47 per square foot. Planning permission for an additional 35,000 square feet of industrial space is also included.
In Germany, Sirius secured a €3 million land parcel adjacent to its 77,600 square meter Oberhausen business park. The acquisition of this nine-acre site enables potential future expansion in the Ruhr area, a major industrial region.
"We are continuing to make good progress with our acquisition pipeline, following on from 12 months of active investments in both Germany and the UK,” chief executive Andrew Coombs said in a statement.
“This acquisition presents the company with a number of value-add opportunities to utilise the Sirius platform to grow the scale and value of the asset.
“In addition, both Carnforth and the land that we have acquired beside our Oberhausen site offer interesting development potential to add further industrial space."