Following up on the Finweek cover story from last week on offshore property investments (5 September issue), asset management firm ClucasGray believes that it has identified a great offshore investment opportunity in the form of Sirius Real Estate, which has exposure to German industrial and warehousing property.
Sirius Real Estate is held i n t he ClucasGray Future Titans Flexible Fund, which aims to invest in funds outside of the JSE Top40 and can hold up to 25% of its portfolio offshore. The fund is managed by Brendon Hubbard and investors can participate in the fund with either R1 000/month debit order or a lump sum of R20 000. Hubbard tells that there are a number of reasons why they like Sirius, including: to the value of the properties it owns. This is unlike the situation in South Africa where a number of listed property companies trade at a significant premium to the property value. property values in Europe begin to creep higher after falling over 40% since 2007. been internalised, saving shareholders a fortune in external management fees. team in high regard, and results to date have been exceptional considering the troubles in Europe. real threat to shopping malls – particularly in Europe – the asset manager has elected to focus on investments in industrial and warehousing property.
dividends sometime soon, ultimately
targeting a 7% euro dividend yield. of debt restructuring by issuing one of the largest private bonds in Germany to European family offices. They expect phase 2 of the debt restructuring to be completed shortly. In June, Credit Suisse noted the following about the German property market in its
commercial property will remain fairly stable in the coming months as the European Central Bank’s monetary policy is likely to remain (too) loose for Germany, and rental markets should benefit from modest but continued positive economic growth (+0.5% in 2013, +1.7% in
maintain our preference for retail proper- ties over offices. The German consumer sector is expanding due to rising real income levels and low unemployment. High-street German rents are trending upward, and this is unlikely to change in the near term.”
A confidential analyst report that Finweek has seen, concludes its “Buy” rating saying: “Sirius is a classic example of a listed real estate company overextended by a previous management, now exhibiting clear signs of recovery and a potential re-rating. The shares trade at a significant 48% discount to our (reduced) NAV forecast in light of a much needed refinancing solution in order to secure the core €400m German industrial/office portfolio. The refinancing is under way, and may complete in the next few months, following which the dividend can be reassessed. The payout primarily relies upon capex