Before Brexit, the UK enjoyed fervent support from South African value chasers with an insatiable appetite for hard-currency earnings. Now, while a blanket of gloom hangs over the UK’s economy, Sirius Real Estate, the JSE’s only purely German real estate offering, stands to benefit from the UK’s vote to leave the European Union.
Sirius CEO Andrew Coombs believes Brexit will be an earnings fillip for the company. He refers to a report by real estate consultancy firm Jones Lang LaSalle, which reveals that Berlin, Munich and Frankfurt in Germany have emerged as the top three out of five cities in terms of investment volumes across Europe in the third quarter of 2016.
South African investors have been more than willing to back Sirius since its JSE listing in 2014. Already more than 40% of the shares are held by domestic investors – among them boutique asset management firms ClucasGray and Anchor Capital.
Nesi Chetty, head of property at MMI Investments & Savings, says growth prospects for Sirius look good as the company continues to grow the core portfolio of small businesses and Smartspace solutions.
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