Sirius Real Estate (LSE:SRE), the owner and operator of branded business and industrial parks in Germany and the UK, has exchanged contracts to sell two Sheffield-area business parks and simultaneously acquire three self storage development sites in England.
The two multi-use parks in the Sheffield area are being sold to a single repeat purchaser for a combined £5.3 million, a 3% premium to book value, with Sirius describing both as stable and well occupied but offering scope for further income or valuation growth.
The three incoming self storage sites, located in Leicestershire, Bedfordshire, and Merton in Greater London, carry total acquisition costs of approximately £12.6 million, with the £5.3 million Sheffield proceeds covering the first tranche and the remaining £7.3 million expected from further non-core UK disposals before year-end.
All three sites will be digitally automated and are subject to planning consent; Leicestershire and Bedfordshire are targeted to open in spring 2027, with Merton expected to complete in 2028.
Each project is forecast to generate double-digit internal rates of return in excess of the company's cost of capital.
"The disposals, agreed at a premium to book value, demonstrate Sirius's continued focus on disciplined capital recycling," said chief executive Andrew Coombs, "crystallising value from smaller, mature assets where we see scope for further income or valuation growth."
