11th Aug 2008 07:00
Principle Capital Holdings S.A.
("Principle Capital" the "Company" or the "Group")
Principle Capital agrees to acquire 48 per cent of Dawnay Day Sirius Real Estate Asset Management Limited (to be renamed Principle Capital Sirius Real Estate Asset Management)
Principle Capital, the independent investment management and advisory group, announces that its wholly owned subsidiary, Principle Capital Partners Limited ("Principle Capital Partners"), has agreed to purchase 48 per cent of Dawnay Day Sirius Real Estate Asset Management Limited ("DDSREAM"). It has also agreed to acquire certain related interests and investments.
DDSREAM is the asset manager of Dawnay Day Sirius Limited ("DDS") (Ticker: DDS.L), a property investment company. Its strategy focuses on business parks, offices and industrial complexes across Germany, investing in large mixed-use commercial real estate assets which can be sub-divided into flexible workspaces offering high quality accommodation to local businesses, predominantly in the SME sector.
DDS originally raised €327.8 million through a listing on the AIM market in May 2007. DDSREAM was established as a joint venture between associates of the Dawnay Day Group (48 per cent), Kevin and Frank Oppenheim (48 per cent) and other senior management (4 per cent). Following the purchase, DDSREAM will be owned as to 48 per cent by Principle Capital Partners, 48 per cent by Kevin and Frank Oppenheim and the remaining 4 per cent by senior management.
Brian Myerson will be appointed as a non-Executive Director of DDS, subject to the approval of the Guernsey Financial Services Commission.
Principle Capital Partners has agreed to purchase the following interests:
1. A 48 per cent interest in the ordinary shares of and a 50 per cent interest in the redeemable preference shares of DDSREAM;
2 A 48 per cent interest in Marba Holland BV ("Marba Holland"), a vehicle established to receive performance fees that may become payable to it in respect of DDS's property portfolio;
3. A 50 per cent interest in Falsa Investments BV ("Falsa"), a 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
4. A 2.55 per cent interest in each of Marba Dutch Holdings BV, Marba Cedarwood BV, Marba Hornbeam BV and Marba Mimosa BV (together the "Marba SPVs"), vehicles which hold certain properties that were rolled into DDS at launch,
(together the "Agreed Assets"). The acquisitions of Falsa and the Marba SPVs remain subject to the receipt of certain banking consents which are expected to be forthcoming. In addition to the Agreed Assets, Principle Capital Partners has agreed in principle, 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. (The Agreed Assets and Sirius Facilities GmbH are the "DD Assets").
The gross consideration for the DD Assets is £1,473,115 and €25,000, which will be satisfied in cash. In accordance with Rule 12 of the AIM Rules, we are required to disclose that the aggregated unaudited profits before tax for the period ending 31 March 2008 of DDSREAM, Marba Holland, Falsa, the Marba SPVs and Sirius Facilities GmbH (the "Sirius Companies"), were approximately £0.654 million and the aggregated unaudited gross assets of the Sirius Companies at 31 March 2008 were approximately £13.8 million. These aggregated figures are before any adjustment to reflect the actual percentage interests that Principle Capital Partners is acquiring in the Sirius Companies.
DDSREAM will be renamed Principle Capital Sirius Real Estate Asset Management Limited and DDS will propose to change its name in due course.
Commenting on the acquisition Principle Capital's Chief Executive, Brian Myerson, said:
"The acquisition of the stake in the asset manager of Sirius adds significantly to our product range in our alternative investment strategy and takes the Principle Capital Group over the US$1 billion mark in terms of funds under management, including those managed on a joint basis such as Sirius. We are delighted to be able to become involved in the management of Sirius and look forward to working closely with our new partners in this venture."
- Ends -
Enquiries
Principle Capital Tel: +44 20 7240 3222
James Peggie
Landsbanki Securities (UK) Limited Tel: +44 20 7426 9000
(NOMAD to the Company)
Jonathan Brown/Tom Hulme
Bell Pottinger Corporate & Financial Tel: +44 20 7861 3232
Olly Scott/Victoria Geoghegan
Related Shares:
Sirius Real Estate