Sirius Real Estate Ltd (SRE.L), on Wednesday revealed that it has signed contracts to acquire a business park, with further development opportunities, in Southampton.
The company will acquire Chalcroft Business Park for 36.5 million pounds, representing a net initial yield of 5.5 percent. A neighbouring 4.5 acres development land with outline planning permission, will also be bought for a sum of 4.0 million pounds.
Chalcroft Business Park spans 56 acres with 267,073 square feet of warehousing and 126,511 square feet of outdoor industrial storage. It also includes a 1.2-acre solar farm that supplies a third of the estate's power. The asset will be operated by Sirius's U.K. operating platform, BizSpace.
The park generates 2.1 million pounds in net operating income, with a WAULT of 4.0 years to break.
Sirius has also acquired an adjacent land plot with outline planning permission for 40,000 square feet of commercial space, with potential for further development.
On the LSE, the stock is trading at 82.60 pence, up 0.67 percent.
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