objectives
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 and rental income from, the Company's portfolio. It will seek to achieve this by investing in a portfolio of commercial real estate assets in Germany, with a primary focus on offices, business parks and industrial complexes. The Company's target payout ratio is 60-80% of its recurring profit.
The Company believes that a combination of factors in Germany has created an attractive window of opportunity to acquire large mixed-use commercial real estate assets which can be sub-divided into flexible workspaces, offering a range of high quality managed business accommodation to local businesses, predominantly in the SME sector. These include:
- improving macro economic conditions and outlook in Germany;
- strong improvement in the SME business climate in Germany;
- significant acquisition opportunities created by changing trends in German property ownership; and
- lack of competition in this market niche.
Enhance rental and capital growth through active portfolio management
To enhance rental and capital growth, the Company intends that the property assets acquired by the Group should be actively managed. The Asset Management will seek to generate value through:
- implementing sub-division strategies for newly acquired premises to divide them into flexible workspaces;
- devising cosmetic improvement schemes to be applied to the common parts of newly acquired premises;
- installing an on-site management team and building a reception suite in each new premises;
- providing complementary facilities at each new premises such as a café and health club;
- adding meeting rooms and conference facilities at each new premises;
- developing excess land on-site at certain premises for the establishment by third parties of complementary uses (for example, as a hotel or for self-storage facilities); and
- in conjunction with Sirius Facilities GmbH and the team delegated responsibility for the day-to-day portfolio management, undertaking performance analysis of the various assets (e.g. timeliness of rent collection and rapid resolution of tenant issues).
Property Portfolio
The portfolio management services are provided by Sirius Facilities GmbH, a property management company. For further information on theproperty portfolio please see www.siriusfacilities.com.