DDS Dawnay Sir.

    RNS Number : 4645V
  Dawnay, Day Sirius
  29 May 2008
   
    
                                        

    Dawnay, Day Sirius announces the acquisition of the Siemens Gewerbepark Portfolio of 5 business parks for EUR98m and the acquisition of
two business parks in Kassel and Pfungstadt for EUR17.9m.

    Dawnay, Day Sirius Limited (the "Company"), the real estate company established to acquire large mixed-use commercial real estate in
Germany for upgrading to flexible workspaces, is pleased to announce that it has agreed to acquire five large industrial and commercial
sites located in Munich, Nuremberg, Offenbach, Hannover and Berlin for a combined purchase price of EUR98 million.  The net initial yield is
8.2% with a current occupancy rate of 89%, however, each site has opportunities for further development and in the case of Berlin, where
occupancy is only 33%, for substantially increasing occupancy levels.  

    The portfolio is being acquired from Siemens who will continue to occupy 47.8% of the current total lettable space creating a secure and
strong rental base for the next 5 years, the remaining space is let to in excess of 30 tenants, leaving 19,840 sqm vacant on acquisition for
immediate upgrading and transformation to flexible workspace. The Company has already identified over 24,000 sqm of surplus land for new
build, lease expiries will generate further opportunities for upgrading and increasing existing rents, and the management team are confident
of introducing new tenants in conjunction with the Sirius "transformation" of the portfolio.  

    In addition, the Company is also pleased to announce it has separately agreed to acquire two freehold business parks in Kassel and
Pfungstadt for a purchase price of EUR17.9 million.  The net initial yield is 7.7% with a current occupancy rate of 94.2%.  We have also
agreed to acquire a smaller business park in Dusseldorf for EUR5.5 million, which is situated in a strong location and it is our second site
in this city.

    All eight sites are situated in excellent locations which will help to further increase the Company's market recognition within Germany.
It is intended that each business park will be re-branded and where appropriate upgraded into modern flexible workspaces to be leased
predominantly to small and medium sized enterprises ("SMEs").  These acquisitions significantly advance the Company in its objective to
become the leading operator of business parks in Germany.

    The Siemens acquisition will be funded through a mix of cash and a new debt facility for which credit approval has been received.  The
acquisition of the Kassel, Pfungstadt and Dusseldorf sites will be funded initially with cash. In addition the Company has drawn down EUR101
million on a new facility with Berlin Hyp. This facility is secured against the seven acquisitions the company made in 2007 post the initial
portfolio. 

    Following these transactions, the Company has made good progress towards its' full investment target of EUR750 million having now
acquired approximately EUR530 million of German property assets. Against these assets the Company will have total borrowings of EUR280
million which equates to a loan to value ("LTV") ratio, based on the proforma balance sheet before 31 March 2008 revaluation, of 53%.  The
Company anticipates that it will retain an LTV ratio at the lower end of the range set at IPO of between 60-80%.

    Kevin Oppenheim, Chief Executive Officer of the Asset Manager said:  

    "These are strong additions to our growing portfolio, which will be immediately earnings accretive. With significant anchor tenants in
place they will generate strong and stable cash flows providing us with the financial base to exploit their true potential. There exists
substantial scope to increase rental values through re-banding and upgrading each site into flexible workspace for the growing SME market as
well as providing significant opportunity for development on the 24,000 sqm of surplus land. These acquisitions further cement our position
as the leading national operator of branded business parks for the German SME occupier market with 38 business parks in 26 locations across
Germany. Looking ahead, we will continue to make acquisitions on a highly selective basis, avoiding sacrificing quality for quantity and
choosing only those opportunities which can generate good returns for our shareholders."

    Further Enquiries

    Sirius Facilities Group               Kevin Oppenheim                   020 7861 0550
    www.dawnaydaysirius.com        Alistair Marks
                                
                                
    JPMorgan Cazenove                 Robert Fowlds                        020 7588 2828
                                                   Bronson Albery


    KBC Peel Hunt                         Capel Irwin                            020 7418 8900

    Cardew Group                           Tim Robertson                      020 7930 0777       
                                                   Shan Shan Willenbrock
                                                   Catherine Maitland

    Notes to Editors

    The Company was admitted to AIM in May 2007 with an initial market capitalisation of EUR300 million. Its strategy is to acquire large
mixed use commercial real estate in Germany suitable for upgrading into flexible workspaces for leasing to local business on a nationwide
basis. 






This information is provided by RNS
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