Sirius Real Estate Regulatory News (SRE)

Sirius Real Estate Limited

("Sirius" or "the Company")

Trading Update

Sirius, the real estate company with a portfolio of 38 large mixed-use commercial sites in Germany, which have been upgraded into modern, flexible workspaces, is pleased to provide a trading update for the period ended 30 September 2011.

Highlights:

- 77% occupancy as at 30 September 2011 (2010 as at 30 September: 73%)

- 28,000 sqm of space let net of move-outs (2010: 13,000 sqm)

- 2 Land disposals together worth €2.5 million

- On track to deliver €1.0 million of further cost savings

The Company is trading broadly in line with expectations and remains focused on increasing occupancy, revenues and efficiency across the portfolio. Over the six months to 30 September 2011, the Company signed 65,000 sqm of new leases against move-outs of 37,000 sqm, compared to 87,000 sqm of new leases and 74,000 sqm of move-outs (inclusive of 14,000 sqm relating to Siemens) in the same period last year. Therefore, net lettings were 28,000 sqm compared with 13,000 sqm in the same period last year. The average rental value of the new lettings was just over €5.00 psm which compares with €4.16 psm in the same period last year. This was a strong lettings performance driven by the manager's sales and marketing teams, showing continued demand amongst the German SME market for flexible space with multiple uses. As a consequence, occupancy was 77% as at 30 September 2011, compared to 73% as at 30 September 2010 and 76% as at 31 March 2011. Net sales made during the quarter will underpin the occupancy rate in the third quarter as there was a higher than expected lag between sales and move-in in the first half. This will be offset to some degree by the 13,000 sqm move-out by Siemens in October 2011.

In addition, the Company recently extended a 34,200 sqm lease with an existing tenant at our Munich Neuaubing site, for 10 years at an average rate of €4.46 psm which over the lease will generate €44.7 million of income (inclusive of service charge).

The Company's programme of cost reduction and cost recovery has continued into the current financial year. This benefit has come despite the well documented increases in electricity and heating costs throughout Germany this year. Overall, we expect to make further savings of approximately €1 million in the current financial year.

Since we last reported we have sold a parcel of land at our Bremen Brinkmann site and sold part of our site in Bonn. These two disposals will generate close to €2.5m of proceeds and around €600k of profit. These properties are generating €115k of annual income. Approximately €2m of the proceeds will be used to repay the loans outstanding at these sites. The Company is currently conducting an ongoing review of the portfolio which will include an assessment of the potential to make further sales.

As at 30 September, the Company had cash reserves of €13 million and all bank facilities were operating within covenants. The facility with the Royal Bank of Scotland matures in October 2012.

As previously announced, the Board is in the process of determining the optimum management structure for the Company going forward. The Board has been in discussions with various parties including PCSREAM, the current asset manager and looks forward to announcing new management arrangements in due course.

The Company will announce its half yearly results for the six months ended 30 September 2011 on 5 December 2011.

Enquiries:

Principle Capital Sirius Real Estate Asset Management Limited

Kevin Oppenheim, CEO 020 7004 7150

Alistair Marks, CFO

Peel Hunt

Capel Irwin 020 7418 8900

Alex Vaughan

Cardew Group

Tim Robertson 020 7930 0777

Georgina Hall