Investing Policy

RNS Number : 9823C

Sirius Real Estate Limited

24 November 2009

 



24 November 2009

Sirius Real Estate Limited (the "Company")

Investing policy

Under the AIM Rules the Company is deemed to be an investing company, and pursuant to Rule 8 of the AIM Rules for Companies it is required to restate its investing policy by no later than 1 December 2009. The Company's investing policy follows the investment strategy and other investment restrictions of the Company that have been in place since its admission to AIM in May 2007.

Investing objective and strategy:

The Company's principal objective is to generate total returns for shareholders through the payment of semi-annual dividends and net asset value growth, primarily through capital appreciation in the Company's portfolio.

It aims to achieve this by investing in, and managing, commercial real estate assets in Germany which can be sub-divided into flexible workspaces, with a primary focus on offices, business parks and industrial complexes, which meet the Company's investment criteria which include:

• levels of demand at the location for premises from local SMEs;

• levels of business activity at the location;

• quality of location and suitability of premises for sub-division into flexible workspaces in order to offer a range of business accommodation;

• whether site densities are sufficiently low, prevalence of good car parking, and amounts of surplus land for expansion and development by third parties of complementary uses (for example, as a hotel or for self storage facilities);

• whether capital values are sufficiently low; and

• potential to generate significant return on costs as multi-let space.

The Company intends that the property assets acquired should be actively managed pursuant to the asset management arrangements with its asset manager with the aim of enhancing rental and capital growth.

Use of gearing:

The Company seeks to enhance returns through the selective use of gearing in the region of 60 to 80 per cent. LTV

Investment restrictions:

Under the Company's articles, the aggregate principal amount at any one time outstanding in respect of monies borrowed by the Company may not exceed 95 per cent. of the gross asset value of the Company

The Company does not intend to acquire land purely for speculative development, and the Company's intention is that no single site with a price in excess of 15 per cent. of the Company's target portfolio size of €750 million will be acquired.

Distribution policy:

The Company's target dividend payout ratio is 60 to 80 per cent. of its distributable profit, which will be distributed to shareholders through semi-annual dividends. There can be no guarantee as to the amount of any dividends payable by the Company.

From time to time, the directors of the Company, upon the realisation of assets, will give appropriate consideration to the return of capital to shareholders.

The Directors will also consult with shareholders regarding proposals for an orderly realisation of the assets of the Company if at any time the directors consider that such proposals would be in the best interests of shareholders.

Life of the Company:

The Company does not have a finite life.

 

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