Sirius Real Estate is disposing of two non-core UK assets and acquiring sites to develop three self-storage facilities in the UK, as part of its ongoing capital recycling strategy.
The UK and German flexible workspace and industrial park operator has agreed to sell two sub-scale, multi-use business parks in the Sheffield area for a combined Β£5.3m (β¬6.1m) to help fund the Β£12.6m acquisition and development of three self-storage opportunities in Leicestershire, Bedfordshire and Merton.
The remaining Β£7.3m required for the acquisition will be sourced from further non-core UK asset sales planned later this year.
βThese transactions are consistent with the groupβs strategy of recycling capital from mature, smaller assets into opportunities with stronger returns potential,β the company said.
Andrew Coombs, CEO of Sirius Real Estate, said: βThe disposals, agreed at a premium to book value, demonstrate Siriusβs continued focus on disciplined capital recycling, crystallising value from smaller, mature assets where we see limited scope for further income or valuation growth and redeploying the proceeds into opportunities with stronger returns potential.
βThe two self-storage conversion sites in Leicestershire and Bedfordshire are expected to open early in the next financial year, with all three acquisition opportunities representing an exciting further step in our self-storage strategy, as we expand on what is already an extensive, high-yielding and resilient part of our platform.
βThese transactions are another example of the active asset management that underpins our ability to generate sustainable returns for shareholders.β
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