You are here:

New bedfellow for Sirius

Created:
11 August 2008
Written by:
Algy Hall

German property fund Dawnay Day Sirius has found a new bedfellow in the shape of Principle Capital Partners, the investment company run by activist investor Brian Myerson.

Advertising

Following the collapse of investment firm Dawnay Day, Principle has agreed to buy its 48 per cent share in Sirius's management company, Dawnay Day Sirius Real Estate Asset Management, as well as stakes in several other special purpose vehicles in which Dawnay Day held interests.

Despite Mr Myerson's reputation as an activist investor, Sirius's management team expects it to be business as usual after Principle completes its purchase later this month, after which the fund will be renamed. The Oppenheim family, which co-founded Sirius with Dawnay Day and will continue to be central in day-to-day management, have known Mr Myerson for many years. However, Mr Myerson plans to take a non-executive post on the board, while Peter Klimt of Dawnay Day will step down.

Principle has considerable property investment experience and it will handle the fund’s administration from now on. It is also expected to start building a stake in Dawnay Day Sirius itself, which should offer some support to the flagging share price.

The deal will put a difficult stage in Sirius's life behind it following Dawnay Day's collapse. The fund claims it has continued to make progress despite the distractions, and is expected to update the market shortly.

IC VIEW:

GoodValue

At €0.54, the shares are trading at a 44 per cent discount to the last reported net asset value (NAV) of €0.96. While recent economic data from Germany has been weak, Sirius is targeting a relatively undersupplied market for flexible work space and management says occupier demand has held up well. So, given the wide discount, the shares are good value.

  • Back to top

Products and Services from Barclays Stockbrokers.

The UK’s No.1 Stockbroker

Stocks and Shares

Contracts for Difference

Financial Spread Trading

Gilts and Bonds

Funds Market

FX

Education Centre

Trading Simulator

Advertorial Feature

Take control of your investing with CFDs

Have you ever watched a move in the markets that you saw coming, but you weren't able to exploit?

by Dominic Picarda

Advertorial Feature

Spread your risks with spread trading

With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?

by Dominic Picarda