Sirius Real Estate to acquire Southampton business park

(Sharecast News) - Property investor Sirius Real Estate said on Wednesday that it has exchanged contracts to acquire a Southampton business park for £40.5m. Sirius Real Estate said it was continuing to deploy the proceeds of its approximately £152.0m capital raise in July 2024, having exchanged contracts to acquire an established business park with further development opportunities in Southampton.

The FTSE 250-listed firm has agreed to acquire Chalcroft Business Park for £36.5m, representing a net initial yield of 5.5%, as well as an adjoining 4.5-acre piece of development land with outline planning permission for £4.0m.

Sirius added that the 56-acre site also includes a 1.2-acre solar farm, benefiting from a 2013 government Feed-in Tariff expiring in 2038, which produces a third of the estate's power requirements and will support the company's sustainability targets.

The freehold asset is 80% occupied and currently produces a net operating income of £2.1m, with a WAULT of four years to break, while the vacant units should add a further £500,000 to the rent roll once let.

As of 1120 GMT, Sirius shares were up 0.55% at 82.50p.







Reporting by Iain Gilbert at Sharecast.com