Sirius Real Estate, a leading proprietor and operator of branded business and industrial parks in Germany and the U.K., has announced the expansion of its UK portfolio. The company’s UK subsidiary, BizSpace, has entered into contracts to acquire a portfolio of two mixed-use industrial assets.

The newly acquired assets, located in Liverpool and Barnsley, offer a combined area of 71,957 sq ft, primarily consisting of workshop accommodation. The acquisition, costing £9.5m, represents a net initial yield (NIY) of 9.6% of the total acquisition cost.

This move comes in the wake of the company’s recent disposals in Camberwell and Ipswich, which were sold at a combined premium to book value. The latest acquisitions underscore Sirius Real Estate’s ongoing strategy of capital recycling, shifting investments from mature, highly valued assets to those with untapped potential that could benefit from the company’s active asset management platform.

Andrew Coombs, Chief Executive Officer of Sirius Real Estate, expressed satisfaction with the execution of the company’s asset recycling strategy. He highlighted the company’s ability to reinvest capital from assets sold at a premium to book value into acquisitions that not only enhance income immediately but also have substantial potential for future asset management initiatives.