Trading Statement

    RNS Number : 7751E
  Dawnay, Day Sirius
  01 October 2008
   



    Dawnay, Day Sirius Limited

    Pre Close Trading Update

    Dawnay, Day Sirius Limited (the "Company"), the real estate company established to acquire large mixed-use commercial sites for
upgrading to flexible workspaces in Germany, is pleased to provide a trading update for the period ended 30 September 2008.

    Since the year end at 31 March 2008, in line with the Company's selective acquisition policy, the Company has announced the acquisition
of nine properties:

    *     Two properties in Dldorf acquired in April and June for EUR19.0 million at a net initial yield of 7.0%, including 37,900 sq m of
vacant land for development purchased separately
    *     Two portfolios comprising seven properties completed in July 2008 for EUR115.9 million at a net initial yield of 8.2%

    Including these properties, Sirius has acquired a total of 38 properties across Germany since IPO, establishing the Company as the
leading owner and operator of business parks in Germany for the SME market. The portfolio has a total combined lettable area of 1.1 million
sq m with potential to create a further 80,000 sq m on the surplus land within the portfolio.

    As previously announced, Principle Capital Partners Limited acquired 48 per cent. of the issued share capital in Dawnay, Day Sirius Real
Estate Asset Management Limited, now renamed Principle Capital Sirius Real Estate Asset Management Limited, the Asset Manager of the
Company. In addition Brian Alan Myerson has been appointed to the Board as a non-executive director. The Company has also proposed in a
circular posted to shareholders to change the name of the Company to Sirius Real Estate Limited, at an Extraordinary General Meeting to be
held on 10 October 2008.

    Asset Management

    In a period of extreme volatility and uncertainty in the global markets, the fundamentals that are important for the success of the
Company's business plan remain strong. Tenant demand from the SME sector remains high and the transformation of space in existing buildings
is progressing well. The Sirius transformation is now generating substantial rental growth across the portfolio which is well in excess of
current market rates: at the Berlin Gartenfeld site, we recently signed a 7 year office lease at EUR7 per sq m, representing an approximate
40% increase from average office rents being achieved on this site pre-transformation. Since the March 2008 year end, we have signed an
additional 47,000 sq m of new leases. We are continually seeing more evidence that the value adding business model is working extremely well
in a robust and resilient market in Germany.

    Developing on surplus land is also a key part of the Company's strategy and we are seeing continued high demand for new build
developments across the portfolio. Six pre-let development deals have now been signed, and construction work has been completed on two of
these sites and is underway at the other four. All of these deals generate between 11% and 16% annual returns on cost. The total additional
income generated from all six deals is expected to be over EUR0.5m per annum.

    To meet the demands of the growing portfolio the Asset Management team now totals 112, increased from 27 at IPO.

    Finance 

    During the period the Company has drawn down credit facilities totalling EUR179 million with Berlin-Hannoversche Hypothekenbank AG and
we have credit approval for a further EUR63 million facility. 

    It is extremely encouraging to have the credit facility with Berlin-Hannoversche Hypothekenbank AG at a time where capital markets are
proving difficult to access for many real estate investors.

    Kevin Oppenheim, Chief Executive Officer of the Asset Manager said:  

    "In turbulent global market conditions, the German economy remains relatively robust, and we continue to see strong occupational demand
from the SME sector. We have acquired a portfolio with the potential for significant enhancement, the benefits of which are already starting
to come through. We have now demonstrated that we can achieve significant rental premiums as a result of the Sirius transformation, and the
new build development opportunities are being exploited across the country. We continue to focus on asset managing the current portfolio to
maximize value and returns."


    Enquiries

    Principle Capital Sirius Real Estate Asset Management Limited            
    Kevin Oppenheim, CEO                                                                  07973 821 008

    JPMorgan Cazenove                
    Robert Fowlds                                                                                020 7588 2828
    Bronson Albery            

    Cardew Group                
    Tim Robertson                                                                               020 7930 0777 / 
    Shan Shan Willenbrock                                                                  07900 927 650
    Catherine Maitland                         

    Principle Capital Advisors Ltd
    Anne Dalen                                                                                   020 7240 3222






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