Sirius Real Estate sells U.K. assets for $7 million, pivots to self-storage expansion

Sirius Real Estate Limited has agreed to sell two non-core U.K. assets for £5.3 million ($7 million), as the Guernsey-incorporated property group accelerates a strategic pivot toward higher-yielding self-storage developments, underscoring its disciplined approach to recycling capital from mature assets into faster-growing segments of the market.

The disposals, involving two sub-scale multi-use business parks in Sheffield, were executed at a 3% premium to book value, underscoring the company’s focus on crystallizing value from smaller assets with limited growth potential. The properties, while stable and well occupied, offered minimal scope for further income or valuation upside.

Sirius to redeploy capital into higher-return assets

Proceeds from the Sheffield disposals will be reinvested into three digitally automated self-storage sites in Leicestershire, Bedfordshire, and Merton in Greater London. The total acquisition cost stands at approximately £12.6 million ($16.64 million), with £7.3 million ($9.64 million) expected to be funded through additional disposals of non-core U.K. assets later this year.

All three developments remain subject to planning approval, with the Leicestershire and Bedfordshire sites scheduled to open in spring 2027, while the Merton project is expected to complete in 2028. The company forecasts double-digit internal rates of return on the projects, exceeding its cost of capital.

Chief Executive Officer Andrew Coombs said the transactions highlight Sirius’s disciplined capital allocation strategy, shifting funds away from mature, lower-growth assets toward sectors with stronger return potential. “These disposals demonstrate our continued focus on recycling capital efficiently, unlocking value from smaller assets and redeploying it into higher-yield opportunities,” Coombs said. “The new self-storage sites represent an important step in expanding a resilient and fast-growing segment of our portfolio.”

Expanding a resilient self-storage platform

The acquisitions build on Sirius’s growing self-storage footprint across Germany and the U.K., including recent developments at its Berlin Gartenfeld site. The company has increasingly leaned into the sector, citing strong demand fundamentals and supply constraints in key locations.

Sirius’s broader strategy centers on acquiring business parks at attractive yields, upgrading and repositioning them through active asset management, and selectively disposing of assets at maturity to recycle capital into new investments.

As of March 2026, the group’s portfolio comprised 145 assets leased to more than 11,700 tenants, with a total book value of approximately €3 billion ($4 billion) and an annualized rent roll of €258.6 million ($341.51 million). The company also holds a 35% stake in a German-focused joint venture with BNP Paribas Asset Management.

With rising demand for flexible storage solutions and constrained supply in urban markets, Sirius is positioning its capital toward segments it expects will deliver sustained growth and stronger long-term returns.