The disposal was achieved at approximately 6% above the last reported book value. The Maintal industrial park offered Sirius little potential for further value creation, however its strategic location made it attractive to the purchaser, a trend we have witnessed in past disposals of mature assets.
The Company also announces that through its BizSpace subsidiary, it has exchanged and completed on the acquisition of a £33.5 million portfolio of three assets located in North London, from a closed ended fund. The assets are based in busy suburban areas, with two in the Borough of Islington and one in the Borough of Camden.
The three assets have a combined area of 103,962 sq ft of primarily multi-let studio workspaces and occupancy rate of just under 70%, which the Group views as providing significant potential for growth.
The properties are let on flexible leases and have a WAULT of 3.1 years. The buildings are well maintained and have over 70 customers, the 10 largest of whom occupy over 50% of the occupied area. The purchase price represents a NIY of 7.3% which through active asset management initiatives should generate a running yield in excess of 10% at maturity.
