Sirius Real Estate disposes of South London asset

Business parks operator Sirius Real Estate has agreed to the sale of an asset in Camberwell, London for £16.0m, representing a net initial yield of approximately 2.0%.

Sirius said on Monday that the asset was part of a portfolio that it had acquired in November 2021 as part of its purchase of BizSpace, a provider of regional light industrial, workshop, studio, and out-of-town office units across the UK.

The FTSE 250-listed firm stated the sale price represented a 94% premium to the valuation at the time of the BizSpace acquisition.

The multi-tenanted business park, made up of approximately 34,700 square feet of industrial and office space, was said to be 91% occupied. The sale was expected to complete in July 2022.

Chief executive Andrew Coombs 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."

Reporting by Iain Gilbert at Sharecast.com