Sirius Real Estate has agreed to sell a part of Bizspace Business Park in Camberwell, London, for £16m, the group said on Monday in an announcement.
Sirius Real Estate stated the sale of the asset in London for £16m representing a NIY of 2%. The deal is expected to reach the finish line in July 2022.
Sirius purchased the asset as part of its portfolio in November 2021 when it acquired BizSpace, the UK’s biggest provider of regional light industrial, workshop, studio, and out-of-town office units.
The sale price is 94 % higher than the value of BizSpace at the point of Sirius’ takeover.
Following a number of asset management strategies supplied through the BizSpace platform, the multi-tenanted business park, which includes about 34,700 sqft of industrial and office space, is 91% utilized.
Sirius Real Estate
Sirius Real Estate is listed on the FTSE250 and identifies as a leading operator of business parks providing conventional space and flexible workspace in both Germany and the UK.
The group’s strategy revolves around buying business parks at attractive yields and shaping them into a space that appeal to the local market with an aim to provide returns to shareholders through rental income and cost recoveries.
The group decides to either refinance or dispose of sites previously acquired to support its growing portfolio.
BizSpace
Sirius Real Estate acquired the “provider of regional flexible workspace in the UK,” BizSpace, in November 2021 as an opportunity to enter through a one-step acquisition of an established platform to offer “light industrial, workshop, studio and out of town office units”
The sale of the asset on Monday just supports the company’s strategy of buying and disposing to keep financing future investments for the company’s overall growth which may be the reason behind why Sirius Real Estate shares were trading up 2.2% to 116.5p.
Andrew Coombs, Chief Executive Officer, Sirius Real Estate, said, “This disposal is further proof of the latent value in the BizSpace portfolio we acquired late last year, the price being significantly ahead of last September’s valuation on which our purchase was based, and the attractive sale follows our recent announcement that we had since improved like-for-like rental income across the portfolio by 7.5%.”
“The sale will allow us to invest in new opportunities for BizSpace in the UK as we continue to build our acquisition pipeline. Bringing together the Sirius and BizSpace platforms, with a strengthened management team at BizSpace, is already delivering strong results and operational synergies that will enhance our UK portfolio.”