Investment summary

There is potential for a re-rating early in the new year. The first catalyst is removal of uncertainty regarding the new asset management structure and the second, strategies to address investor concerns over short-term cashflows and loan maturities due in late 2012. This should progressively return attention to the operational characteristics of the German business park portfolio, which produced another period of growth in occupancy, net lettings, rents and ERVs, as well as new tenant enquiry levels and lettings. The indication from the interim statement is that the management agreement will be settled in the final quarter of the current year. We will comment in more detail post that, on the back of news flow in early 2012.

Last updated on 16/12/2011

Industry outlook

Sirius owns 38 large, mixed-use (offices, storage and light industrial space) business parks across Germany, which makes it the leading operator of branded business parks providing flexible workspace to the German SME market. Much of the tenant base is drawn from the German SME sector, a profile likely to make use of its other on-site services, such as Smartspace flexible storage, conferencing and catering facilities.

Last updated on 09/12/2011