Sirius Real Estate has exchanged contracts on the £48.2m acquisition of Vantage Point Business Village, a multi-let business park in Gloucestershire.
The acquisition price represents a 10.2% yield.
The asset has been bought using the proceeds of Sirius’s £147m capital raise last November.
The acquisition represents the first asset in the UK by Sirius this year and adds more than 1.5m sq ft to its BizSpace portfolio.
The 60-acre business park at Mitcheldean was known for manufacturing Rank projection equipment and was Rank Xerox’s manufacturing hub between 1961 and 2003.
It is 81% occupied and offers a mixture of warehouse, production, storage, conventional and serviced office space to more than 70 companies across 119 units.
As part of the acquisition, Sirius has also acquired a PV solar business from the vendor which currently supplies most of the electricity to the site from panels installed on particular buildings, providing energy security and an attractive income stream.
Sirius chief executive Andrew Coombs said: “This sizeable strategic acquisition is transformational for our UK BizSpace platform, and increases its portfolio by more than 1.5m sq ft. 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. It also presents a number of value creation opportunities by driving both occupancy and rental income.”
He added: “We have now committed to more than £135m of acquisitions since November and are continuing to actively seek future opportunities where we see the chance to create value, leaving us well-placed to support the continued long-term growth of the group.”
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