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(Sharecast News) - Sirius Real Estate announced the expansion of its UK portfolio by around 20% on Tuesday, with the £101.1m acquisition of Hartlebury Trading Estate in Worcestershire, marking a significant addition to its BizSpace platform.
The FTSE 250 company said the purchase increased its UK portfolio to 8.3 million square feet, and raised its gross asset value by about 20%, with an immediate 10% boost to revenues.
It said the 171-acre freehold site comprises around 1.5 million square feet of mainly warehouse space and 17 acres of industrial open storage plots.
The estate was currently 84% let to more than 100 tenants, generating annual net operating income of £6.9m and offering reversionary potential through the letting of recently refurbished and new space.
The deal reflected an EPRA net initial yield of 6.45% after costs.
"The acquisition of Hartlebury Trading Estate marks a significant and highly strategic milestone for our UK BizSpace platform," said chief executive Andrew Coombs.
"Adding over 1.5 million square feet across 171 acres, this transaction materially scales our UK portfolio and positions us as a leading player in the Midlands region.
"The estate offers immediate, robust cash flow from a well-diversified and stable tenant base, while also presenting a number of opportunities to leverage the combined expertise of the Sirius and BizSpace platforms to enhance existing revenues and unlock new income streams through hands-on asset management."
Sirius said it planned to implement environmentally focused upgrades and pursue development opportunities on two plots within the estate.
The low 19% building coverage and configuration into three separable estates provided further flexibility for asset management, the board added.
It noted that the transaction followed recent acquisitions in Dresden and Bedford, and was the firm's ninth business park purchase in 2025, bringing total investment this year to €289.9m and adding €20m of net operating income.
The company said it had now fully deployed capital from equity raises in late 2023 and 2024, alongside bond financings in 2024 and 2025, and expected the benefits to be reflected in second-half results and beyond.
At 1212 BST, shares in Sirius Real Estate were down 0.57% at 104.3p.
Reporting by Josh White for Sharecast.com.
