Sirius Real Estate (JSE:SRE)

Andrew Coombs
CEO
Market Cap (AUD): 28.51B
Sector: Financials
Last Trade (AUD): 26.95 +0.16 (+0.6%)
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1. About

Sirius Real Estate (JSE:SRE) owns and operates light industrial business parks in exclusively in Germany offering a range of conventional and flexible workspace solutions. 

Since 2006, the Company has looked to acquire individual business parks and integrate them into its network of sites under the Sirius brand, while also reconfiguring and upgrading the space to appeal to the German SME market.

Sirius’ key differentiator is its fully integrated operating platform of over 250 people spread across 60+ locations in Germany which significantly enhances returns whilst reducing the risks commonly associated with the asset class.

The company's core strategy is the acquisition of business parks in Germany which have either attractive yields, value-add potential, or both. Sirius transforms these business parks into higher-quality assets through investment and intensive asset management. 

Once sites are mature and net income and values have been optimised, Sirius may then refinance the sites to release capital for investment in new sites or consider the disposal of sites in order to recycle equity into assets which present greater opportunity to deploy the Sirius team’s assset management skills. 

There are five key value drivers:

  1. Active Portfolio Management – increasing rental and capital value through active portfolio management. 
  2. Transforming and Converting Vacant Space - subdividing and improving existing space so that it can be marketed directly to occupiers using the different Sirius products.  
  3. Occupancy and Rental Growth – transforming assets by delivering improvements to tenant mix, occupancy levels and rents. 
  4. Improvement of Service Charge Recovery – delivering best-in-class cost recovery by utilising advanced measurement and cost allocation techniques. 
  5. Growth Through Acquisition and Asset Recycling – optimising value and recycling equity into assets which present greater opportunity for active asset management. 

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk