Sirius Real Estate Regulatory News (SRE)

11 Aug 2008 07:00



Dawnay, Day Sirius Limited

Principle Capital Partners Limited agrees to acquire 48 per cent. of 

Dawnay, Day Sirius Real Estate Asset Management Limited (to be renamed Principle Capital Sirius Real Estate Management Limited)

Further to the announcement of 14 July, the Board of Dawnay, Day Sirius Limited ("DDS") is pleased to announce that Principle Capital Partners Limited ("Principle Capital Partners"), a subsidiary of Principle Capital Holdings SA ("Principle Capital"), has agreed to purchase 48 per cent. of the issued share capital in Dawnay, Day Sirius Real Estate Asset Management Ltd ("DDSREAM"), the asset manager of DDS.  

DDSREAM was established as a joint venture between Dawnay Day Real Estate Asset Management Limited ("DDREAM") (48%), Kevin and Frank Oppenheim (48%) and management (4%).  Completion of the acquisition by Principle Capital Partners, and the related acquisitions set out below, is conditional upon entities controlled by Kevin and Frank Oppenheim first acquiring shareholdings from DDREAM and other associated entities pursuant to separate agreements.

Following completion of the DDSREAM acquisition and the Marba Holland BV acquisition described below, which is expected to take place in the next two weeks, Principle Capital will make available to DDS senior management and personnel of Principle Capital Partners as a subcontractor to DDSREAM under the terms of an asset management agreement dated 30 April 2007 between, amongst others, DDSREAM and DDS (the "Asset Management Agreement"). 

Principle Capital has also agreed to purchase the following interests:

a 48 per cent. interest in Marba Holland BV, the vehicle which was established to receive performance fees that may become payable to Marba Holland BV in respect of DDS's property portfolio; 

a 50 per cent. interest in Falsa Investments BV ("Falsa"), the vehicle which holds a 5.1 per cent. interest in certain properties that were acquired by DDS at the time of its initial public offering; and

a 2.55 per cent interest in each of Marba Dutch Holdings BV, Marba Cedarwood BV, Marba Hornbeam BV and Marba Mimosa BV, vehicles which hold certain properties that were acquired by DDS at launch.

The acquisitions of Falsa and the Marba SPVs remain subject to the receipt of certain banking consents, which are expected to be forthcoming. Principle Capital Partners also intend, subject to due diligence, to acquire a 50 per cent. interest in Sirius Facilities GmbH, a vehicle that provides property management services to DDS and DDSREAM.

In addition, Peter Klimt has today stepped down from the board of DDS with immediate effect. Peter Klimt was heavily involved with the formation of the Company and the Board have thanked him for his contribution and guidance since launch and wished him well for the future. Peter Klimt and Guy Naggar have stepped down from the board of DDSREAM. 

It is also expected that following completion:

Brian Myerson will be appointed as a non-Executive Director of DDS, subject to the approval of the Guernsey Financial Services Commission;

DDS will change its name, subject to shareholder approval at a forthcoming general meeting to be convened by DDS; and

DDSREAM will be renamed Principle Capital Sirius Real Estate Asset Management Limited.

Principle Capital will work with the existing team and sub-contractors managing the assets of DDS, headed by Kevin Oppenheim, in continuing the Company's investment strategy and progressing the business.

Kevin Oppenheim CEO of DDSREAM said:

"Principle Capital brings expertise and commitment to Sirius, initially through their acquisition of a stake in DDSREAM, as we continue to make excellent progress in establishing a leading operator of branded business parks in Germany focused on the SME sector. My family and I have known Brian Myerson and his team for many years and I look forward to working together to generate returns for shareholders."

Brian Myerson CEO of Principle Capital said:

"The acquisition of the stake in the asset manager of Dawnay, Day Sirius adds significantly to our product range in our alternative investment strategy and takes us over the US$1 billion mark in terms of funds under management. We are delighted to be able to become involved in the management of this strategy and look forward to working closely with our new partners in this venture. We are making a long term commitment to this business initially via the asset manager and then directly into the fund." 

Enquiries

Dawnay, Day Sirius Real Estate Asset Management Limited

Kevin Oppenheim, CEO 07973 821 008

Principle Capital 020 7240 3222

James Peggie

JPMorgan Cazenove

Robert Fowlds 020 7588 2828

Bronson Albery

Cardew Group

Tim Robertson 020 7930 0777 / 07900 927 650

Shan Shan Willenbrock

Catherine Maitland

Note to Editors

The Principle Capital group (the “Group”) is an independent investment management and advisory group specialising in the provision of alternative fund products. With offices in London, Geneva, Johannesburg and Cape Town, the Principle Capital Group is headed by Brian Myerson and five other founding partners, who, since 1989, have been actively involved in alternative investment strategies and holds an excellent track record in generating shareholder returns. 

The holding company of the Principle Capital Group, Principle Capital Holdings S.A., is listed on AIM ("Ticker: PCX.L").

Brian Myerson

Brian Alan Myerson, aged 49 co-founded the Principle Capital group in November 2004. Prior to Principle Capital, Brian was Joint Chief Executive of Active Value which he founded in 1993. Brian has been on the boards of several listed companies, including Liberty plc (2000 to date), Greycoat plc (1994 to 1996), Sage Group (South Africa) (2003 to 2004), and Marylebone Warwick Balfour Group plc (2002 to 2005) where he was non-Executive Chairman.