Real Estate Reinvestment
Sirius Real Estate Repositions UK Portfolio for Growth, Investing in Automated Self-Storage
Anonymous
Key Points
1
The sale of the two Sheffield non-core assets is to a single purchaser with whom Sirius has transacted previously, but the buyer is not named.
2
The £12.6 million total site acquisition costs will be funded from the £5.3 million Sheffield disposals plus a further £7.3 million from additional non-core UK asset disposals expected within the year.
3
Site opening/completion schedule specifies Leicestershire and Bedfordshire openings in spring 2027, with the Merton (Greater London) site completing in 2028.
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The two Sheffield assets being disposed of are described as stable and well occupied but with limited potential to drive further income or valuation growth.
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Sirius Real Estate’s stock rose about 2.26% in London following the announcement of the disposals and new acquisitions.
Sirius Real Estate has sold two Sheffield business parks for £5.3 million — a 3% premium to book value — and will plow the proceeds into three digitally automated self-storage development sites across England. The announcement sent the company's London-listed stock up 2.26%, according to TipRanks.
The three new sites, located in Leicestershire, Bedfordshire, and Merton in Greater London, carry a total cost of about £12.6 million. Sirius expects double-digit internal rates of return — meaning it expects to earn back its investment at a rate of over 10% per year — from the new developments, according to Directors Talk Interviews.
Sheffield Parks Sold to a Familiar Buyer at a Premium
Sirius sold the two South Yorkshire business parks to a single unnamed buyer it has dealt with before. The company described both assets as stable and well-occupied. But it said they were too small to drive further income growth or push up their valuations, according to The Business Desk.
The £5.3 million sale price beat the most recent book value by 3%. Analysts at Peel Hunt called that a "strong signal" of demand for UK light industrial assets, even those Sirius considers mature. The clean exit leaves no named counterparty risk on the table.
Three Storage Sites Targeted in Undersupplied UK Markets
The Leicestershire and Bedfordshire sites are both expected to open in spring 2027. The Merton site in Greater London will follow in 2028. All three will be digitally automated — meaning customers can book, access, and manage their units via mobile apps with no onsite staff needed, according to Directors Talk Interviews.
The UK self-storage market has long been undersupplied compared to the United States. Sirius is betting the three new sites sit in markets where demand outstrips available space. CEO Andrew Coombs said the company is "moving capital from mature assets into high-growth opportunities where we see significant potential for value creation," per the official press release cited by Market Screener.
£7.3 Million Funding Gap Means More UK Disposals Are Coming
The Sheffield sale raises only £5.3 million of the £12.6 million needed. Sirius must find another £7.3 million from further non-core UK asset sales to fully cover the cost. The company says it expects to complete those additional disposals within the current financial year, according to Quoted Data.
That signals a second wave of BizSpace asset sales is likely before year-end. Sirius has framed the overall process as disciplined capital recycling — selling slow-growth assets to fund higher-return ones — rather than a broad retreat from the UK market.
Automation Edge Puts Sirius in Direct Contest With Safestore and Big Yellow
By stripping out the need for permanent onsite staff, the automated model cuts running costs and keeps sites open around the clock. A senior analyst at Green Street noted this is "future-proofing" Sirius's margins against rising UK labor costs, according to TipRanks.
The move puts Sirius in more direct competition with established UK self-storage operators like Safestore and Big Yellow Group. Unlike those pure-play rivals, Sirius is funding its storage push entirely through asset recycling — without raising new equity or adding significant debt. That approach trades a steady, low-growth income stream from Sheffield for riskier but potentially higher-returning development projects due online in 2027 and 2028.
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