Dawnay Day-backed firm raises €272m on the London stock exchange

Dawnay Day Sirius, which has been set up to convert large mixed-use German properties into flexible workspace, floated today on the Alternative Investment Market.

Dawnay Day Sirius has raised €272 million ($354 million) via its initial public offering on London’s Alternative Investment Market.

The firm, which converts mixed-use properties in Germany into flexible workspace for small- and medium-sized businesses, placed 272 million shares at €1 each.

It is using the capital to help fund a €750 million property acquisition program in the recovering German economy over the next 12 to 18 months.

Dawnay Day Sirius is a joint venture between London investment bank Dawnay Day and Frank and Kevin Oppenheim. Dawnay Day chairman Guy Naggar, chief executive Peter Klimt and the Oppenheims own 9.3 percent of the newly listed company through their private vehicle Staracre Limited.

The joint venture was first set up in the UK before branching out to Germany in 2005 via Sirius Facilities Group. Sirius is selling its portfolio of 20 properties independently valued at €206 million to the public company, which says it is in talks to buy a further €400 million worth of property.

The move comes as the German real estate market continues to attract international private real estate investors betting on an upswing in the occupational market.

Today Bahrain-based International Investment Bank revealed it has acquired a €98 million portfolio of properties in Munich in its third European real estate deal.

Aabed Al Zeera, chief execuitve of the bank, said: “Germany offers attractive growth potential. Munich is one of the largest cities in Germany and a manufacturing capital. Studies have found it to be the city with the best economic prospects in Germany.”

Last week, Central European developer Orco and Morgan Stanley Real Estate Fund V confirmed the €400 million purchase of an 8 million square foot portfolio of Berlin property from state-owned GSG. Leglislators approved the sale on April 27, although it is still conditional on passing anti-trust laws.

The two partners plan to work out the development projects and lease up the space. Among the better-known assets is the Fehrbelliner, a residential project featuring townhouses and penthouses, while another is Haus Cumberland on the Kurfurstendamm, which Orco says could potentially become “the new destination for the western part of Berlin.” The site of the former Werthein-Areal on the Leipziger Platz is seen as a key development connecting the east and west centers of Berlin, with the potential for one million square feet of development.