In a strategic move to bolster its property portfolio, Sirius Real Estate (SRE) has announced plans to raise £145 million through a capital placing. This initiative follows the company’s recent acquisition of multiple assets, including properties in Liverpool, Barnsley, and three locations in North London, which collectively amounted to £45 million.

The fundraising effort will include an institutional placing available to both new and existing eligible investors. Additionally, selected qualified investors in South Africa will have access to the placing, alongside an offer of new shares for retail investors on PrimaryBid.

SRE has identified promising acquisition opportunities in the German and UK light industrial and business park sectors. The company’s directors have highlighted the robust real estate market dynamics in Germany, noting the country’s diversified economy, strong SME market, and high replacement costs for light-industrial buildings. These factors contribute to a favourable environment for pursuing organic and acquisition-led growth strategies.

Similarly, the UK real estate market is perceived positively, driven by strong rental growth potential, regional investment commitments by the UK government, an increase in near-shoring activities, and a structural undersupply of multi-let assets. The UK’s market conditions for light industrial assets also remain resilient.

SRE’s growth strategy involves acquiring assets in Germany and the UK that meet the company’s disciplined selection criteria. The focus is on under-utilised, multi-let, mixed-use properties, primarily located outside city centres in areas with high commercial and industrial activity and good transport links. The company aims to enhance the value of these assets through its capex investment programme and targeted asset management.

The company has identified eight acquisition opportunities in its pipeline, four in Germany and four in the UK, requiring an estimated €85 million and £45 million in acquisition costs, respectively. The identified properties offer potential for value enhancement through various strategies, including service charge recovery and occupancy improvements.

Sirius Real Estate’s proactive approach in expanding its portfolio through these targeted acquisitions showcases its commitment to growth and value creation in the real estate sector.