SIRIUS REAL ESTATE LIMITED - Sirius exchanges contracts to acquire Southampton Business Park with development opportunity and solar facility

Sirius exchanges contracts to acquire Southampton Business Park with development opportunity and solar facility

SIRIUS REAL ESTATE LIMITED
(Incorporated in Guernsey)
Company Number: 46442
JSE Share Code: SRE
LSE (GBP) Share Code: SRE
LEI: 213800NURUF5W8QSK566
ISIN Code: GG00B1W3VF54

12 March 2025

                                      Sirius Real Estate Limited
                   ("Sirius Real Estate", "Sirius", the "Company" or the "Group")

 Sirius exchanges contracts to acquire Southampton Business Park with development opportunity
                                 and solar facility for £40.5 million

Sirius Real Estate, the leading owner and operator of branded business and industrial parks providing
conventional space and flexible workspace in Germany and the U.K., has continued to deploy the
proceeds of its approximately £152 million (€181 million) capital raise last July, having exchanged
contracts to acquire an established business park with further development opportunity in
Southampton. The Company has agreed to acquire Chalcroft Business Park for £36.5 million,
representing a net initial yield of 5.5%, as well as an adjoining 4.5 acre piece of development land with
outline planning permission, for £4.0 million.

Chalcroft Business Park comprises 267,073 sq ft of predominantly warehousing space alongside
126,511 sq ft of outdoor industrial storage. The 56-acre site also includes a 1.2-acre solar farm,
benefiting from a 2013 government Feed-in Tariff (FIT) expiring in 2038 which produces a third of the
estate's power requirements and will support Sirius's sustainability targets. The freehold asset is 80%
occupied, with the only two vacant units having recently reached practical completion following an
extensive refurbishment to a high specification, including solar panelled roofs.

Chalcroft Business Park benefits from a strategic location just north of Southampton, with direct
access to the M27 motorway connecting to Junction 14 of the M3. Southampton is a leading
commercial centre and primary logistics hub on the English South Coast thanks to the city's excellent
road, port, rail and air connectivity. The well-maintained site is also adjacent to One Horton Heath,
which is a large mixed use development that includes 2,500 planned new homes. The asset will be
operated by Sirius's U.K. operating platform, BizSpace, and is complementary to the Company's
existing site in nearby Fareham.

The business park currently produces a net operating income of £2.1 million, with a WAULT of 4.0
years to break, while the vacant units should add a further £500,000 to the rent roll once let. The
main estate also presents a number of opportunities for further development including planning
consent for approximately 69,000 sq ft of new industrial space with the potential to deliver £800,000
of additional rental income. Sirius has also identified scope to drive value across the rest of the estate
by utilising its asset management platform to enhance occupancy and income, capturing the clear
reversionary potential.

The land plot adjacent to the main estate that has also been acquired has outline planning permission
for approximately 40,000 sq ft of commercial space, providing a further development opportunity in
the future.
Since its equity raise last July, Sirius has successfully acquired over €100 million of income producing
properties at an attractive 7.1% average yield. Comprising assets in Carnforth, Munich, Reinsberg,
Oldham and now Chalcroft, these acquisitions will add €7.1 million to the Company's annual FFO run
rate, once complete.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, commented: "The acquisition of
Chalcroft Business Park adds a strong, income-generating asset to our portfolio, with strong
sustainability credentials and significant potential for further value creation. By leveraging the
combined expertise of the Sirius and BizSpace platforms, we aim to enhance existing revenues while
unlocking new income streams through hands-on asset management and development. Since our
equity raise last July, we have continued to acquire properties at attractive yields, demonstrating our
ability to identify and secure strategic opportunities that drive rent roll growth and, in many cases,
also offer interesting additional development opportunities. With a robust and active pipeline of
prospects across the U.K. and Germany, as well as additional capital available for investment, we
remain well positioned to complete the acquisition programme initiated last summer."

                                                 ENDS

For further information:
Sirius Real Estate
Andrew Coombs, CEO / Chris Bowman, CFO
+44 (0) 20 3059 0855

FTI Consulting (Financial PR)
Richard Sunderland / Ellie Sweeney / James McEwan
+44 (0) 20 3727 1000
SiriusRealEstate@fticonsulting.com

NOTES TO EDITORS

About Sirius Real Estate
Sirius is a property company listed on the equity shares (commercial companies) category of the
London Stock Exchange and the premium segment of the main board of the JSE Limited. It is a leading
owner and operator of branded business and industrial parks providing conventional space and
flexible workspace in Germany and the U.K. As of 30 September 2024, the Group's owned portfolio
comprised 145 assets let to 10,025 tenants with a total book value of €2.4 billion, generating a total
annualised rent roll of €214 million. Sirius also holds a 35% stake in Titanium, its €350+ million
German-focused joint venture with clients of AXA IM Alts.

The Company's strategy centres on acquiring business parks at attractive yields and integrating them
into its network of sites - both under the Sirius and BizSpace names and alongside a range of branded
products. The business then seeks to reconfigure and upgrade existing and vacant space to appeal to
the local market via intensive asset management and investment and may then choose to refinance
or dispose of assets selectively once they meet maturity, to release capital for new investment. This
active approach allows the Company to generate attractive returns for shareholders through growing
rental income, improving cost recoveries and capital values, and enhancing returns through securing
efficient financing terms.

For more information, please visit: www.sirius-real-estate.com
Follow us on LinkedIn at https://www.linkedin.com/company/siriusrealestate/

Follow us on X (Twitter) at @SiriusRE

JSE Sponsor
PSG Capital

Date: 12-03-2025 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.