Sirius Real Estate, a prominent name in the ownership and operation of branded business and industrial parks across Germany and the U.K., has made a strategic move by acquiring the Earl Mill business park in Oldham in the United Kingdom for £5.7 million (R132 million).
This is the second acquisition the company has made this year, following the recent purchase of the Reinsberg business park in Dresden, presenting a blended EPRA net initial yield (NIY) of 7.95% across both properties.
Located in a prime area, Earl Mill is a multi-let business park that provides a robust mix of warehouse and office spaces.
Sirius plans to operate this new acquisition under its BizSpace brand, leveraging its extensive expertise in asset management.
The purchase price of Earl Mill reflects an impressive EPRA NIY of 13.9%, indicating its value and potential for strong returns.
The property boasts 174 000 square feet of lettable area, primarily skewed towards warehouse space at 71%, complemented by 29% designated for office use. With an occupancy rate of 95%, the park generates a Net Operating Income (NOI) of £844 000 per annum.
Spanning 3.8 acres, the Earl Mill site features ample amenities, including parking facilities for 300 vehicles.
This acquisition not only promises immediate income but also rich opportunities for enhancing value through vacant space leasing, environmental upgrades, and prospective future developments.
Given its proximity to BizSpace's existing Hollinwood site in Oldham, Earl Mill is poised to benefit significantly from Sirius's established presence and deep understanding of the local market landscape.
Andrew Coombs, CEO of Sirius, said this strategic acquisition underscored Sirius Real Estate's commitment to expanding its footprint and enhancing its operational effectiveness across key regional markets, setting the stage for significant growth in the coming years.
“Our acquisition of Earl Mill in Oldham generates day one income and offers further significant potential to improve rental tone and develop new revenue streams through improvements to the site,” Coombs said.
“Our BizSpace portfolio continues to benefit from the strength and asset management capability of the Sirius platform and, building on the momentum we have achieved so far in 2024, we already have a healthy pipeline of acquisition opportunities in Germany and the U.K. for this year."
BUSINESS REPORT