Principle Capital Partners to buy 48% stake in Dawnay Day Sirius asset management arm

Investment management and advisory group Principle Capital Partners is a subsidiary of Principle Capital Holdings.

The asset management arm of Dawnay Day Sirius was established as a joint venture between Dawnay Day Real Estate Asset Management Limited with a 48% stake, Kevin and Frank Oppenheim who have a 48% stake, and management which holds the remaining 4%.

It 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 for local businesses, predominantly in the SME sector.

Company to be rebranded
Following the completion of the deal in two weeks and shareholder approval the asset manager will be rebranded Principle Capital Sirius Real Estate Asset Management. It will be headed by Kevin Oppenheim.

Dawnay Day owners Peter Klimt and Guy Naggar have stepped down from the board of Dawnay Day Sirius Real Estate Asset Management.

Klimt has stepped down from the board of Dawnay Day Sirius with immediate effect. He was heavily involved with the formation of the company and the board thanked him for his contribution.

Myerson appointed as non-executive director

Following completion of the deal Principle Capital’s chief executive Brian Myerson will be appointed as a non-executive director of Dawnay Day Sirius, subject to the approval of the Guernsey Financial Services Commission.

Principle Capital has also agreed to buy a 48% stake in Marba Holland, a vehicle receives performance fees that may become payable from Dawnay Day Sirius’ property portfolio. This deal is also expected to complete within two weeks.

It has also bought a 50% stake in Falsa investments, a vehicle which holds a 5.1% stake in properties bought by Dawnay Day Sirius at the time of its initial public offering.

Further planned purchases

Principle Capital Partners will also buy a 2.55% stake each in four vehicles - Marba Dutch Holdings, Marba Cedarwood, Marba Hornbeam and Marba Mimosa - which all hold Dawnay Day Sirius properties that were bought at the IPO.

The Falsa and Marba deals remain conditional on receiving banking consents which ‘are expected to be forthcoming’.

Principle Capital Partners said it also intends, subject to due diligence, to take a 50% interest in Sirius Facilities, a vehicle that provides property management services to Dawnay Day Sirius and its asset management arm.

Adding to product range
Brian Myerson, chief executive officer at Principle Capita, said: ‘The acquisition of the stake in the asset manager of Dawnay, Day Sirius adds significantly to our product range in our alternative investment strategy and takes us over the US$1bn mark in terms of funds under management.

‘We are delighted to be able to become involved in the management of this strategy and look forward to working closely with our new partners in this venture. We are making a long term commitment to this business initially via the asset manager and then directly into the fund.’