Sirius Real Estate Limited
Annual Report and Accounts 2014
Sirius Real Estate Limited Annual Report and Accounts 2014 About us
We are the largest branded 
provider of mixed-use flexible 
workspace in Germany
Sirius Real Estate Limited is a real 
estate company with a portfolio of 30 
business parks across Germany, providing 
a combination of conventional and 
modern, flexible workspace.
“ The results clearly show 
the benefit of the actions 
taken over the last three 
years. The Company has 
restructured itself to be able 
to improve profitability and 
strengthen its financial base. 
With recurring profits at 
record levels and progress 
towards refinancing, the 
business is well positioned 
to generate attractive 
returns going forward.”
Adjusted NAV per share
**
 
44.3c
Adjusted earnings per share
***
 
2.73c
Dividend 
0.3c per share
Occupancy
*
 
76%
New lettings 
113,784sqm
Improvement in non-recoverable 
costs and overheads 
€0.6m
Average debt expiries 
5.3 years
Highlights 01
1
Strategic report
2
Governance
3
Financial statements
Annual Report and Accounts 2014  /  Sirius Real Estate Limited
Contents
1 Strategic report
2 Governance
3 Financial statements
Highlights 01
Our business 02
Chairman’s statement 04
Chief Executive’s report 07
Board of Directors 11
Directors’ remuneration report 12
Directors’ report 16
Independent auditors’ report 19
Consolidated statement 
of comprehensive income 20
Consolidated statement 
of financial position 21
Consolidated statement 
of changes in equity 22
Consolidated cash 
flow statement 23
Notes to the financial 
statements 24
Corporate directory IBC
Gross annualised rent roll
*
 
€41.5m
+0.2%
2012
40.2
2013
41.4
2014
41.5
Earnings per share 
7.31c
+176.8%
2012 2013
2014
-10.25
-9.52
7.31
Recurring profit before tax 
€11.3m
+29.9%
2012
2.9
2013
8.7
2014
11.3
€21.2m
Land and non-core property disposals 
in the period totalled €21.2 million 
with a further three land and 
non-core properties notarised 
for sale for €2.6 million.
Disposals 
€448.7m
The valuation represents a 6.4%
*
 
increase on the prior year and a 
4.4%
*
 increase on the valuation 
from September 2013.
Property portfolio 
50.9%
Reduced from 65.4% in 2013 due 
to the capital raisings, amortisation 
and improvement in valuations.
Group loan to value 
€200m
Completed the refinancing of all 
the Group’s borrowings during the 
period with three new debt facilities 
totalling €200 million at favourable 
interest rates.
Refinancing 
[•]
4.42
Average rate per sqm
*
 
€4.48/sqm
+1.4%
2012 2013 2014
4.48
4.42
4.27
Irrecoverable service charge 
€6.67m
-6.3%
2012 2013 2014
6.67
8.22
7.12
Adjusted earnings
***
 
€10.81m
+27.8%
2012 2013 2014
10.81
2.77
8.46
Growth strategy 
Significant organic growth potential through an enhanced capex programme 
investing in highly accretive refurbishment opportunities within the core portfolio.
Earnings accretive acquisition opportunities identified with two business parks 
in advanced stages of negotiation for €19 million.
*
 Adjusted for disposals
**
 Excluding provisions for deferred tax and derivative financial instruments
***
  Excluding surplus/deficit on revaluation (net of related tax), change in fair value of derivative financial 
instruments, loss on sale of properties and non-recurring expenses 02 Sirius Real Estate Limited  /  Annual Report and Accounts 2014
Our business
Our strategy going forward
Sirius has a diversified property portfolio 
of business parks across Germany with 
over one million sqm of lettable space. 
The portfolio is split into core and non-core 
properties with the majority of the non-core 
properties now disposed. Additionally Sirius 
operates property management contracts on 
behalf of other property owners.
Our property portfolio
Sirius owned and managed property
Example: Berlin Gartenfeld 
 
 
 
 
 
 
Book  
value Income Occupancy
Gross  
yield
Rate per 
 sqm
€16,265,725 €1,366,596 77% 8.4% €5.07
 
1
To acquire large under-utilised office 
and industrial properties for conversion 
into improved, efficient, higher yielding, 
flexible workspace, targeted specifically 
at small and medium-sized enterprises.
Read more about our business 
in the Chief Executive’s report
Page 7

Our business model
We are focused on increasing the value 
of our portfolio through:
Organic growth
º  Extensive capex programme to generate  
around 40% ROI
º  Further conversion to Sirius high 
yielding products
º  Continued development of innovative new 
product solutions
º  Further rental growth from existing tenants  
and churn
º  Further improvements in service 
charge irrecoverables
º  Increasing occupancy levels
Property acquisitions
º  Initial geared cash on attractive cash yields 
º  Further value-adding potential
º  Acquisition of operating and management 
agreements of non-Sirius properties
Disposal
º  Asset disposal of remaining non-core properties
º  Development and disposal of land
Our strategy
Before
After TROISDORF
Sirius owned & managed properties
Completed disposals
Sirius managed properties
Annual Report and Accounts 2014  /  Sirius Real Estate Limited 03
1
Strategic report
2
Governance
3
Financial statements
The table shows the key details of the core portfolio 
of 27 assets and the three assets that are for sale.
The core portfolio is currently valued on a gross yield of 9.2% and a capital value of €445.6 per sqm.  
*  
One non-core asset which is valued as a development site has been written down to offers  
received. All other assets have book value equal to valuation 
^
Excludes technical space
Book  
value
Rent 
roll
Total 
sqm Occupancy
Rate per 
 sqm
Core assets €434.3m €40.3m 0.93m
^
79.8% €4.52
Non-core assets 
for disposal €9.4m
*
€1.2m 0.09m
^
33.4% €3.41
Total €443.7m €41.5m 1.02m 75.7% €4.48
Completed disposal
Example: Regensburg
Book  
value Income Occupancy
Gross 
Yield
Rate  
per 
sqm
€6,300,000 €683,155 80% 10.8% €2.96
 
3
Sirius managed property 
 
 
 
 
 
2
Essen
Stuttgart Munich 04 Sirius Real Estate Limited  /  Annual Report and Accounts 2014
Chairman’s statement 
For the year ended 31 March 2014
“ These results confirm the 
completion of our turnaround 
plan and a return to the 
dividend list with a commitment 
to pay out 65% of future 
recurring profits.”
Introduction
I am pleased to be able to present these results, which not 
only show further profit improvements, despite the disposal 
of a number of assets, but more importantly also represent a 
successful conclusion to the restructuring of the Company which 
has created a solid financial base from which it can now grow. 
For the year ended 31 March 2014, the Group is able to report 
a recurring profit
*
 before tax of €11.3 million (2013: €8.7 million), 
a 30% increase on the prior year, and a net profit after tax 
of €28.9 million (2013: net loss of €30.3 million). 
Owing to the strength of the operating platform that we have 
developed to manage our asset class over the last few years, we 
have been able to access financing sources that have not only 
fulfilled the requirements for our existing portfolio, but also opened 
up options for future investment. During the period this process 
included successfully raising €6.5 million and €40.0 million in 
two separate equity placements and entering into three new 
debt facilities totalling €200 million. A strengthened capital 
structure, with LTV falling from 65% to 51% (excluding cash 
reserves), allowed the Company to secure some very competitive 
financing rates, whilst increasing our debt expiries to between 
January 2017 and July 2023, with an average expiry of 5.3 years. 
Following the second capital raising in December we have 
commenced a €9.0 million programme of earnings-enhancing 
capex improvements to the existing portfolio. In addition, we have 
progressed the non-core asset disposal programme. We have 
sold €21.2 million of land and non-core properties during the 
period and have two land and one non-core property sales 
notarised for €2.6 million. We have also two further non-core 
properties for sale and have identified further properties of 
approximately 100,000 sqm of surplus non-income producing 
land which can either be sold or developed depending on the 
level of returns. Funds raised from asset sales going forward 
will provide resources for our acquisition programme. We have 
already identified a good pipeline of potential acquisitions and 
are in advanced stages of negotiation over two business parks 
for €19 million.
º  The Company has continued to operate successfully 
in an improving market. Rental income continues 
to increase, service charge cost recoveries have 
improved and overheads have again been reduced.
º  During the period the Company completed the  
long-term refinancing of its assets.
º  The Board is pleased to recommence the payment 
of a regular dividend, starting with a final dividend 
of 0.30c per share for the period.
In summary Annual Report and Accounts 2014  /  Sirius Real Estate Limited 05
1
Strategic report
2
Governance
3
Financial statements
Alongside this, the Company has continued to operate 
successfully in an improving market. Rental income continues 
to increase, service charge cost recoveries have improved and 
overheads have again been reduced. Combined with the impact 
of favourable bank interest rates secured during the period, 
recurring profits increased by 30%. Consequently, the Board 
is pleased to recommence the payment of a regular dividend, 
starting with the payment of a final dividend of 0.30c per share 
for the period. Whilst only a modest payment at this stage, 
the 0.30c dividend declared represents 65% of the recurring 
profits
*
 after tax for the March 2014 quarter, following the capital 
raising completed in December 2013. We are pleased to report 
that it is the Board’s intention to pay a dividend equal to 65% 
of the recurring profits
*
 after tax in respect of each financial 
year of the Group going forward. It is intended that dividends 
will be paid on a semi-annual basis and offered to shareholders 
in cash or scrip form.
*
  Recurring profits are profits before property revaluation, change in fair value 
of derivative financial instruments and non-recurring costs
Financial results
T otal income for the year was €45.1 million (2013: €46.1 million) 
which includes €1.7 million received by way of a surrender premium 
(2013: €1.0 million) paid to the Company for the reduction of 
an existing lease term at one of our Munich sites. The demand 
for our space in Munich is strong so we are confident of replacing 
this tenant shortly after it moves out in 2016, rather than 2018 as 
under the original agreement. As at 31 March 2014, the annualised 
gross rent roll of the entire portfolio increased to €41.5 million 
(2013: €41.4 million
*
), a good performance considering we 
experienced the last of the planned Siemens move-outs in July, 
along with three other notable significant move-outs. Despite the 
tough economic backdrop and the scheduled Siemens vacations, 
whereby it has given back 83,879 sqm over four years, we have 
been able to grow our rental income every year over this period, 
confirming the demand for our workspace and our ability to 
re-let space. Siemens, the only notable tenant with a known 
scheduled space reduction programme, remains a large tenant 
but now represents only 3.5% of our rent roll in March 2014 
compared to 15.5% in March 2010.
*
 Adjusted for disposals
Earnings per share amounted to 7.31c (2013: loss per share 
of 9.52c) while adjusted earnings per share excluding property 
revaluation, change in fair value of derivative financial instruments 
and non-recurring costs amounted to 2.73c (2013: 2.66c). This 
slight increase in adjusted earnings per share was achieved despite 
the number of ordinary shares in issue increasing to 518,900,307 
(2013: 317,578,176) following the equity placings in 2013 and 
the disposal of three business parks in the period. 
Portfolio valuation
The existing portfolio was independently valued at €448.7 million 
by Cushman & Wakefield LLP at the year end (31 March 2013: 
€421.7 million
*
). The valuation represents a 6.4%
*
 increase 
on the prior year and a 4.4%
*
 increase on the valuation from 
September 2013. This is the second valuation in succession 
where values have increased. 
The Company has 
continued to operate 
successfully in an 
improving market
The core portfolio comprises 27 of the 30 assets, valued at 
€436.2 million with an average gross yield of 9.2% (2013: 9.9%). 
The average capital value per sqm is €445.6 (2013: €417.4
*
) 
even though these assets operate with an occupancy of only 
80% (2013: 81%). An intensive capex programme that focuses 
on approximately 50% of the vacant space of these assets, 
currently either unlettable or significantly under-rented, has 
commenced during the period. This capital expenditure is 
expected to produce a high return on investment, both in 
terms of income and value accretion.
*
 Adjusted for disposals
Funding
During the period the Company completed the long-term 
refinancing of its assets. The Group has, since our first facility 
expired in October 2012, completed four new debt facilities 
totalling €228 million, with debt expiries ranging between 
January 2017 and July 2023 and an average unexpired term 
of 5.3 years. The key points of the financing are described 
in the table below:
October 2012 March 2014
Number of assets 37 30
Value of assets €474m €448m
Bank loans outstanding €(286)m €(226)m
LTV (excluding cash reserves) 60% 51%
Annual interest €14.10m €10.88m
Weighted average interest rate 5.3% 4.7%
Weighted average debt expiry 0.5 years 5.3 years
With the refinancing successfully completed, a sustainable 
capital structure established and new lending sources created, 
the Company has a number of options for its future financing 
requirements and a number of lenders have expressed interest 
in financing future acquisitions. There is a high yield differential 
between the properties we own or look to acquire and the rates 
at which we can finance them in the current environment, 
giving us confidence that we can grow our income through 
accretive acquisitions.  06 Sirius Real Estate Limited  /  Annual Report and Accounts 2014
Chairman’s statement continued
EGM and Board changes
Following the passing of the resolutions at the EGM held on 
1 May 2014, the Company has relocated its tax residence from 
Guernsey to the United Kingdom. Although the Company will 
continue to be a limited company registered in Guernsey, the 
migration in tax residence to the UK enables the Company to 
take advantage of recent reforms of the UK tax regime and 
allow future Board appointments to be made irrespective 
of their residence. Migration will also allow the Company 
to hold Board and shareholder meetings in the UK.
The Board also announced on 1 May 2014 the appointment 
of Andrew Coombs as Chief Executive Officer and Alistair Marks 
as Chief Financial Officer to the Board of the Company with 
immediate effect. Andrew and Alistair have for the past 
four and seven years respectively been Chief Executive Officer 
and Chief Financial Officer of the Company’ s property management 
subsidiary, Sirius Facilities GmbH. I am delighted to welcome 
them to the Board. 
At the same time, Ian Clarke stepped down from the Board as 
a Guernsey-based Non-executive Director of the Company but 
will take up a position as a director of a new Guernsey subsidiary 
of Sirius being formed as part of the migration. I would like to 
thank Ian for his significant contribution to the Company over 
the last three years. He was a valued member of the Sirius 
Board and I look forward to our new relationship with him 
as director of our new subsidiary. The Board has commenced 
a search for a replacement Non-executive Director.
Outlook
Demand for Sirius’ products across our offerings, both for 
conventional space and the flexible products, is strong and the 
German economy remains robust. We are confident that the 
business will continue to move forward and that the initiatives 
we have in place will support further increases in income and 
profitability which in turn will underpin our ability to increase 
returns to shareholders.
In addition to the organic growth opportunities, we have 
identified a number of attractive core acquisitions with the 
potential to generate excellent income and capital returns 
for the Group. The experience and knowledge gained over the 
last seven years, coupled with the Company’s market-leading 
position as operators of multi-tenanted business parks across 
Germany, make it well placed to pursue these opportunities. 
Robert Sinclair
Chairman
Net asset value
The adjusted net asset value (NAV) per share, which excludes the 
provisions for deferred tax and derivative financial instruments, 
was 44.3c as at 31 March 2014 (31 March 2013: 48.4c). 
The movement in adjusted NAV per share in the period can 
be reconciled as follows:
Opening adjusted net asset value per share 48.4c
Impact of equity capital raisings and issues 
during the year (10.1)c
Impact of valuations/disposals 3.8c
Impact of retained profits 2.2c
Closing adjusted net asset value per share 44.3c
Accordingly, excluding the impact of the equity capital raisings, 
the NAV per share has increased by 15.7% in the period.
Dividend
The Board is pleased to recommence the payment of a regular 
dividend, starting with a final dividend of 0.30c per share for the 
period. The final dividend will be paid on 22 August 2014 to 
shareholders on the register as at 25 July 2014. The ex-dividend 
date will be 23 July 2014. Whilst only a modest payment at this 
stage, the 0.30c dividend represents 65% of the recurring profits
** 
after tax for the March 2014 quarter, following the capital raising 
completed in December. The Board has set a policy to pay a 
dividend equal to 65% of the recurring profits
**
 after tax in respect 
of each financial year of the Group going forward. It is intended 
that dividends will be paid on a semi-annual basis and offered 
to shareholders in cash or scrip form. 
**
  Recurring profits are profits after tax and before property revaluation, change 
in fair value of derivative financial instruments and non-recurring costs
Capital structure
We have significantly de-risked the capital structure of the 
business, with all debt refinanced for a weighted average term 
to expiry of 5.3 years and a reduction in the loan to value to 
50.9%, excluding cash reserves. We have already seen a reduction 
in our cost of debt as a result of this improvement but we believe 
there is scope to reduce both our interest cost and amortisation 
requirements further over time. We believe the business should 
be managed with a capital structure robust enough to sustain all 
market conditions, thereby reducing the risk for our shareholders. 
To this end we believe it is appropriate to continue strengthening 
the balance sheet and the Board has set a target loan to value 
of 40% to be achieved over the next two years. This target will 
be achieved through improvements in the value of our estate 
due to income growth, asset management initiatives and capital 
expenditure, as well as contractual debt amortisation and 
acquisitions on a lower loan to value. Our objective is not to 
maximise income through high leverage but to find the appropriate 
balance of risk and return. We believe these actions will result 
in a significantly reduced cost of capital for the business in 
future years, while reducing the risk for our shareholders and 
leaving the Company in a stronger position to exploit opportunities 
throughout different economic and property cycles. 07
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Strategic report
2
Governance
3
Financial statements
Annual Report and Accounts 2014  /  Sirius Real Estate Limited
“ We believe that as asset 
managers of multi-tenant, 
mixed-use, workspace across 
Germany we have created a 
substantial operating platform 
that has enabled us to 
increase profitability and 
open up the debt markets.” 
Chief Executive’s report
Introduction
The ultimate measure of successful asset management lies 
in the total returns generated by the Company through both 
increased income returns and improvement in capital values. 
During the financial year, we saw a 30% increase in recurring 
pre-tax earnings, building upon the significant progress made 
the year before. Capital returns also turned positive this year, 
resulting in a 15.7% improvement in net asset value per share, 
excluding the impact of the capital raisings in the period. 
Behind this continued improvement in returns have been 
the benefits of the asset and property management initiatives 
developed over the last five years. Throughout this time we 
have reduced the portfolio from 38 business parks to 30, 
and in so doing reducing total income returns, but improving 
profitability and the quality of income, while providing a much 
stronger base from which to grow. Within the core portfolio 
there remains significant scope for organic improvement and it 
is the intention of the Company to realise this potential, as well 
as to make attractive selective acquisitions that fit within the 
Sirius business model and which we will be able to exploit 
through our existing management platform. The business will 
benefit from scale advantages of a larger portfolio, as our fixed 
overhead cost base can be spread over a larger estate.
We continue to use the long-term stable income we receive 
from our core, conventional anchor tenants as a platform to 
generate higher yielding income from the short-term flexible 
space and it is the balance between the two that we seek 
to optimise. As at 31 March 2014, our core anchor tenant 
base comprises 64 tenants generating 62% of the rent roll. 
Conversely only 60,639 sqm (7% of total space) has been 
converted to our high yielding flexible products such as 
Smartspace and Flexilager. We believe that there is demand to 
create more of this high yielding space from areas which are 
currently unlettable within the core portfolio and much of the 
capex investment programme outlined below focuses on this 
element of the estate. The smaller tenants that occupy these 
products and some of our more conventional offerings are 
drawn from Germany’s large SME sector, from which we 
continue to experience robust demand for space.
º  A 30% increase in recurring pre-tax earnings, building 
upon the significant progress made the year before.
º  We believe that there is demand to create more 
high yielding space from areas which are currently 
unlettable within the core portfolio. The capex 
required to convert this space, is around €9.0 million.
º  During the period under review, the Company sold 
further land and non-core properties totalling €21.2m 
and we have identified other non-core business parks 
for disposal.
In summary 08 Sirius Real Estate Limited  /  Annual Report and Accounts 2014
Chief Executive’s report continued
The amount of space that is able to be let without investment is 
approximately 72,000 sqm (7.7% of total space) and has an ERV of 
around €3.7m. We have identified around 100,000 sqm of space 
which cannot be let to its full potential without investment of which 
around 30% requires light investment and 70% full refurbishment. 
The capex required to convert this space, as part of our latest 
development initiative, is around €9.0 million and is expected to 
create high quality lettable space with an ERV of around €5.0 million. 
Bearing in mind that this space in its current condition has a very 
low and in most cases a zero ERV , the returns from both an income 
and valuation perspective are compelling. We use our extensive 
sales and marketing databases and experiences to analyse the 
demand fully for any space before we convert, so that investments 
are made in a calculated and measured way rather than 
speculatively. We plan on funding this capex from operational 
cash flow and the remaining proceeds of the equity raises in 2013 
and have already commenced a significant amount of the 
expenditure. We expect to have the capex invested within two years 
and the full impact of the returns coming through soon thereafter.
Non-core disposals
During the period under review, the Company sold further land and 
non-core properties totalling €21.2m and we have identified other 
non-core business parks for disposal. Since the disposal programme 
began, the Company has disposed of €38.6m of non-core property 
and land that was contributing €3.2m of net operating income. 
One non-core property and two land sales have been notarised 
for sale for €2.6m and a further two non-core properties are 
currently being marketed for sale. We expect the non-core 
disposals to be completed over the next 18 months. In addition, 
we have identified 100,000 sqm of non-income producing 
surplus land which can be either sold or developed and any 
proceeds can be used for reinvestment into the acquisition 
programme. Land disposals would obviously only be done 
where the returns and demand for the other investment 
opportunities outweigh those for developing the surplus land.
Acquisitions
The growth strategy of the Company includes the acquisition 
of core assets to replace the non-core assets that have been 
disposed of over the last few years. There are significant 
benefits to be had from adding good income producing 
properties which we can finance at currently attractive rates 
and which will not require any increase in our overhead costs 
to manage, given our well established management platform. 
A number of suitable properties have been identified which 
can be purchased at attractive yields, thereby being accretive 
to cash flow and earnings. We are also focusing our efforts 
on enhancing the geographical mix of the portfolio to allow us 
to benefit from the synergies of having multiple locations close 
together whilst also focusing on the strongest markets for our 
product. Two business parks which can be purchased for around 
€19 million are at advanced stages of negotiation and we have 
also identified a number of other potential acquisition opportunities.
The management team 
is focused on ensuring 
that the Group benefits 
from our ongoing asset 
management initiatives, 
capital expenditure 
programme and 
attractive acquisitions
Introduction continued
To this end, the Company continues to evolve its product offering 
which is one of the factors that allows us to push rental rates 
constantly higher and differentiates Sirius from its competitors. 
The Smartspace ranges of Smartspace Büro, Smartspace Lager 
and Smartspace Workbox continue to be highly popular with 
our SME customers, where at the more mature sites occupancy 
consistently exceeds 90% at rental rates of more than €7 per sqm, 
significantly higher than the average across our estate. We have 
now converted 30,073 sqm to Smartspace and are looking 
to expand this materially over the next twelve to 18 months. 
Flexilager is the cheaper storage offering which is created within 
dead space for a very low investment and is currently achieving in 
excess of €4 per sqm. Flexilager is now in operation on 30,567 sqm 
and offers a low cost solution for businesses and individuals 
already on site and coming from outside. Conferencing is proving 
to be a very valuable product. Not only have we achieved on 
average €8 per sqm on the 5,013 sqm that has been converted 
so far, but having these facilities available on site is proving to be a 
great selling point for the other products as well as providing 
very useful footfall onto our business parks.
We believe that as asset managers of multi-tenant, mixed-use, 
workspace across Germany we have created a substantial operating 
platform that has enabled us to increase profitability and open 
up the debt markets, during an economic period which has 
been very challenging for anyone dealing with non-prime assets. 
This competitive advantage has allowed us to turn around the 
performance and stabilise the business and will be the catalyst 
for future growth. 
Capex investment programme
This is the largest opportunity and our most important initiative for 
organic growth. Our core portfolio of 27 assets has a net lettable 
area of 930,765 sqm of which currently 188,111 sqm is vacant.  09
1
Strategic report
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Governance
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Financial statements
Annual Report and Accounts 2014  /  Sirius Real Estate Limited
Lettings and marketing 
The strength of the Sirius operating platform removes many 
of the risks typically associated with our asset class, with the 
internal marketing and lettings systems at the forefront of this. 
Our online presence is key to our ability to manage the national 
portfolio of circa 320 buildings, as 80% of new tenants contact 
us through our website or internet portals. Our approach to 
maintaining our online presence is sophisticated, aimed at ensuring 
the Sirius brand and products are visible to potential customers 
across a large number of websites used by our customers. 
Having achieved an average enquiry rate of over 1,000 
enquires per month for some time now, our focus is not as 
much on increasing enquires but rather increasing the quality 
of the enquiries and therefore the conversion rate.
Conversion is a constant focus for the lettings teams across 
each business park. The sales process we use and introduction 
in our marketing suites that each new prospective tenant is 
given are consistent throughout our business and we strive 
to provide a very different experience to that of any of our 
competitors. This is certainly reflected in our high conversion 
rate of customers once they have visited a site. Part of our 
success is our ability to tailor solutions to meet the needs 
of nearly every customer given the wide variety of space 
and flexibility of formats we can offer. In the period, average 
enquiries were 1,046 per month, viewings 524 per month 
and sales 115 per month, an increase of 1%, 10% and 7% 
respectively on the prior year and demonstrating a strong 
sales to enquiries conversion rate of 11%.
New lettings and move-outs
As at 31 March 2014 the Company’s total portfolio had an 
occupancy rate of 76% (31 March 2013: 76%
*
), while the 
average in-place rent per sqm was €4.48 per sqm (2013: €4.42
*
).
During the period under review, Sirius generated new lettings 
of 113,784 sqm at €5.16 per sqm (2013: 107,348
*
 sqm at 
€5.29
*
 per sqm) and we saw move-outs of 112,982 sqm at 
€4.42 per sqm in the period compared to 100,956
*
 sqm at 
€4.28
*
 per sqm in the previous year. The move-outs include 
thescheduled 21,674 sqm vacation of Siemens at our Hanover and 
Nuremburg sites as well as 10,736 sqm of unexpected move-outs 
due to insolvency. As has been the case consistently over the 
last few years, regardless of the level of move-outs, we have been 
increase rental income each year. Given that there are no more 
scheduled Siemens move-outs, Siemens being the only notable 
tenant with a known space reduction programme, and that the 
economic outlook for Germany remains positive, we are hopeful 
that the level of move-outs going forward will be reduced. 
Completed the sale of Rostock Goethestrasse for €0.975 million.
August 2013
Completed the sale of Regensburg and Karlsruhe 
for €9.55 million.
Portfolio valuation increased by 1.9%.
September 2013
RBS loan facility repaid in full.
December 2013
Completed the sale of a land package in Dusseldorf for 
€4.2 milllion and notarised the sale of another land package 
in Bremen for €2.1 million.
February 2014
Completion of the Company’s refinancing programme. 
The Group has completed four new debt facilities totalling 
€227 million in the last 15 months.
March 2014 10 Sirius Real Estate Limited  /  Annual Report and Accounts 2014
Chief Executive’s report continued
New lettings and move-outs continued
We now have most of our tenants on modern, high quality 
leases, with more appropriate rental rates and improved 
recovery clauses and we expect the number of terminations 
initiated by us to reduce accordingly.
Combined with the greater lettings opportunities being 
created by our investment programme, we are looking forward 
to further improvements in both occupancy and passing rents 
over the next few years. Product mix will play a significant 
part in the improvement as our focus is to create more of the 
high yielding premium Smartspace products which is where 
we are experiencing encouraging demand and not enough 
product, as well as filling otherwise dead space with our low 
cost Flexilager storage offering.
*
 Adjusted for disposals
Operational efficiencies
The reduction of Group overheads and the improved recovery 
of service charge costs have been the single biggest driver of 
the increased profitability of the Group over the last four years 
and there remains further scope for improvement going forward. 
In the year under review we saw further improvements in this 
area of approximately €0.6 million. We are forecasting a recovery 
of approximately 81% of the service charge costs on an average 
occupancy during the year of 75%. Considering that our service 
charge costs are close to €40 million and most companies that 
operate multi-tenant, mixed-use parks like ours rarely achieve 
recovery percentages at the occupancy level, this part of the 
business is a big asset for the Company. 
Portfolio analysis
The table below shows the key details of the core portfolio 
of 27 assets and the three assets that are for sale. The core 
portfolio is currently valued on a gross yield of 9.2% and a 
capital value of €445.6 per sqm.
Appointment of Andrew Coombs as Chief Executive Officer 
and Alistair Marks as Chief Financial Officer of the Company. 
Ian Clarke stepped down from the Board.
Migration of tax residence of Sirius Real Estate Limited from 
Guernsey to the United Kingdom.
May 2014
The year ahead
We shall continue to improve at the operational level during the 
year and I would like to thank the management team and all 
the staff for their tremendous efforts this year. I am very optimistic 
that we can meet our targets for the new financial year and 
the management team is focused on ensuring that the Group 
benefits from our ongoing asset management initiatives, as 
well as those of the capital expenditure programme and the 
attractive acquisitions we are expecting to secure.
Andrew Coombs
Chief Executive Officer
Book value Rent roll Total sqm Occ Rate per sqm
Core assets €434.3m €40.3m 0.93m
^
79.8% €4.52
Non-core assets for disposal €9.4m
*
€1.2m 0.09m
^
33.4% €3.41
Total €443.7m €41.5m 1.02m 75.7% €4.48
*
 One non-core asset which is valued as a development site has been written down to offers received. All other assets have book value equal to valuation
^
 Excludes technical space Annual Report and Accounts 2014  /  Sirius Real Estate Limited 11
1
Strategic report
2
Governance
3
Financial statements
Board of Directors
The Company has an experienced 
Board of two Executive Directors 
and four Non-executive Directors, 
which is chaired by Robert Sinclair
Robert Sinclair (Non-executive Chairman), aged 64
Robert Sinclair is managing director of the Guernsey-based Artemis Group 
and a director of a number of investment fund management companies and 
investment funds associated with clients of that group. He is chairman of 
Schroder Oriental Income Fund Limited and is a director of Picton Property 
Income Limited. Robert is a Fellow of the Institute of Chartered Accountants 
in England and Wales.
Rolf Elgeti (Non-executive Director), aged 37
Rolf Elgeti is currently chief executive of TAG Immobilien AG, a German 
listed real estate group with circa €3 billion of assets under management, 
and, until 17 April 2012, non-executive chairman of Treveria plc, the German 
retail focused real estate company. He previously worked in various banking 
roles at UBS, Commerzbank Securities and ABN Amro. Rolf graduated with 
an MBA from the University of Mannheim, Germany, and received an MBA 
from ESSEC, Paris, in 1999.
James Peggie (Non-executive Director), aged 43
James Peggie is a director and co-founder of the Principle Capital Group. 
He is a qualified solicitor and, before working at the Active Value Group, 
James worked in the corporate finance division of an international law firm. 
James graduated from Oxford University in 1992 and in 1994 from 
The College of Law. James has a wealth of experience as a director 
of various companies including Liberty plc from 2006 to 2010. 
Introduction to the Board
Wessel Hamman (Non-executive Director), aged 41
Wessel Hamman was appointed a Director of the Company on 17 May 2011. 
Wessel is a partner and chief executive of Clearance Capital LLP , a specialist 
European real estate securities investor and adviser to the Karoo Investment 
Fund S.C.A. SICAV-SIF. Wessel is a Chartered Accountant by training and 
spent eleven years in the investment banking industry before co-founding 
Clearance Capital in 2008.
Alistair Marks (Chief Financial Officer), aged 45
Alistair Marks is a Chartered Accountant who qualified with BDO in 
Australia in 1997. Alistair joined the Sirius Facilities Group in early 2007 
from MWB Business Exchange Plc, where he spent almost three years as 
group financial controller. Prior to that he spent three years within the BBA 
Group Plc. Alistair is responsible for the financial management and control 
across the Group including the accounts issued to the Group’s shareholders. 
Andrew Coombs (Chief Executive Officer), aged 49
Andrew Coombs joined the Sirius Facilities Group in January 2010. 
Prior to joining Sirius Andrew worked for the Regus Group as UK sales 
director and before that as director and general manager for MWB Business 
Exchange Plc. Prior to working in the property sector Andrew held a number 
of general management roles. Andrew’s responsibilities to Sirius Real Estate 
include formulating and agreeing the strategy for delivering shareholder value. 
He is also responsible for running Sirius Facilities GmbH together with the 
group of other operating companies owned by Sirius in Germany and it is 
through these operating companies that the strategy is ultimately executed.  Sirius Real Estate Limited  /  Annual Report And Accounts 2014 12
Directors’ remuneration report
Dear Shareholder
On behalf of the Board, I am pleased to present the 
Directors’ Remuneration Report (“Report”) for the year ended 
31 March 2014. The Report has been expanded where deemed 
appropriate given the size and structure of the Company this year 
due to the recent appointments of the Group’s Chief Executive 
Officer and Chief Financial Officer to the Board. The Committee 
agreed the remuneration package including the Long Term 
Incentive Plan (“LTIP”) at the time of the internalisation of the 
Company’s management team in January 2012. The Committee 
does not propose that the Report should be subject to shareholder 
vote as this is not required given the Company’s status as an 
AIM listed company and it does not believe that this is appropriate 
at this stage given the Company’s current size and structure.
The Report is divided into two sections:
 º
 the Policy report which sets out the current Remuneration 
Policy; and
 º
 the Annual Report on Remuneration which sets out details 
of the operation of the Remuneration Committee and details 
of the Directors’ remuneration packages for the year ended 
31 March 2014.
The Committee aims to ensure that remuneration is linked 
to the performance of the Company and believes that the LTIP , 
which is based on specific targets and growth in net asset value 
per share adjusted for dividends, ensures that management is 
aligned with shareholders. The Committee is satisfied that the 
outcomes in respect of the incentives and remuneration paid 
during the financial year under review are appropriate. 
In respect of the current financial year, the Committee does 
not propose any changes to the Remuneration Policy which 
is laid out on the following pages. The Committee will ensure 
that the Company’s remuneration policy and practices are kept 
under review to ensure that they remain appropriate for the 
Company at its stage of development and that they do not 
encourage any unnecessary risk taking by the executive team.
On behalf of the Board I would like to thank shareholders for 
their continuing support.
Yours sincerely
Wessel Hamman
Chairman of the Remuneration Committee Annual Report and Accounts 2014  /  Sirius Real Estate Limited 13
1
Strategic report
2
Governance
3
Financial statements
Remuneration policy
This part of the Report sets out the remuneration policy for the 
Company. The policy for the Executive Directors, and Non-executive 
Directors is determined by the Committee and the Committee 
approves any adjustments to director fees, salary and bonus awards. 
The Committee also sets the parameters for the remuneration 
packages of the Senior Management Team of the Company. 
Authority is delegated to the Chief Executive Officer and Chief 
Financial Officer to implement all other salary adjustments and 
bonus awards for staff within agreed parameters. The Committee 
decides on all awards under the Company’s Long Term Incentive 
Plan (“LTIP”) and approves the operation of the Company’s Share 
Matching Plan (“SMP”).
The aim of the Committee is to ensure that the remuneration 
packages are sufficiently competitive to attract, retain and 
motivate individuals of the quality required to achieve the 
objectives of the group and thereby enhance shareholder 
value. The Committee also aims to ensure that all employees 
receive rewards that fairly reflect their seniority, level of work 
and contribution to the Company.
Executive Director and senior management policy
The summary of the remuneration policy for the Company’s 
two Executive Directors and seven-member Senior 
Management Team is set out below:
Salary
Purpose and link to strategy
To provide an appropriate salary level to support retention 
and recruitment of staff and ensure that staff are appropriately 
rewarded in relation to their role and responsibilities.
Operation
Reviewed annually on 1 April.
Salary increases are defined in the executive’s service contracts 
and are linked to the average German inflation rate in the period.
Benefits
Purpose and link to strategy
To provide a competitive and comprehensive range of benefits 
to assist in the attracting and retaining the calibre of staff 
required for delivery of corporate and strategic objectives.
Operation
The benefits package for executives includes private medical 
insurance, death in service insurance and travel accommodation. 
These are reviewed every year to ensure that the level of rates 
and cover remains competitive.
Pension
Purpose and link to strategy
To provide an appropriate level of pension contribution 
for executives whilst minimising the administrative burden 
for the Company.
Operation
An annual contribution equal to 10% of basic salary for 
Executive Directors is made to a private or group pension plan.
Annual bonus
Purpose and link to strategy
To reward the achievement of annual targets as set by 
the Committee.
Operation
Objectives are set at the start of the financial year.
The Executive Directors and Senior Management Team 
are treated as one team in respect of target setting.
The bonuses are paid in cash after the financial year audit has 
been completed and are subject to retention (35% Executive 
Directors and 15% Senior Management Team). Performance 
hurdles are agreed for the subsequent year in order for the 
retention to be released.
Annual bonus caps are applied which limit the annual bonuses 
of the Executive Directors and the Senior Management Team. 
Long Term Incentive Plan (“LTIP”)
Purpose and link to strategy
To support alignment with shareholders through setting specific 
performance objectives, with awards enhanced by Net Asset Value 
per share performance.
Operation
The LTIP currently in place was approved by the Committee 
in 2012 for the three years ending 31 March 2015 and was 
separated into two schemes, one for the Executive Directors 
and one for the Senior Management Team.
The Executive Director scheme is paid out fully with shares in 
the Company at zero cost to the participant and is based on 
achieving three specific performance conditions. The number 
of shares that vest for each performance condition is determined 
by the Company’ s T otal Shareholder Return (“TSR”), with reference 
to dividends and growth in Net Asset Value per share, for the 
period of the LTIP . The minimum number of shares awarded per 
condition will vest when each performance condition is 
unconditionally satisfied and the additional shares resulting 
from TSR performance, if any, will vest after the completion 
of the audit of the Company’ s 31 March 2015 Statutory Accounts. Sirius Real Estate Limited  /  Annual Report And Accounts 2014 14
Directors’ remuneration report continued
Remuneration policy continued
Long Term Incentive Plan (“LTIP”) continued
Operation continued
The Senior Management Team scheme is also paid out fully 
with shares in the Company at zero cost to the participant and 
is based on the Company’s Total Shareholder Return (“TSR”), 
based on dividends and growth in Net Asset Value per share, 
for the period of the LTIP . The shares awarded under this scheme, 
if any, will vest after the completion of the audit of the Company’ s 
31 March 2015 Statutory Accounts.
Share matching plan (“SMP”)
Purpose and link to strategy
To encourage share ownership in the Company.
Operation
The Executive Directors and Senior Management T eam are offered 
the opportunity to participate in the SMP whereby the Company 
will issue the participant a share at no cost for every share that 
the participant purchases in the Company during the year. 
The value of shares that can be issued is subject to a cap equal 
to 50% of the participant’s basic salary. Each participant is liable 
for any personal income tax that becomes payable as a result 
of any shares issued from this scheme and minimum holding 
periods apply.
Non-executive Director policy
The Company’ s Articles of Association provide that the Committee 
can determine the level of fees to be paid to the Non-executive 
Directors within limits set by the shareholders. This is currently 
set at an aggregate of £600,000 per annum. The Policy for the 
Chairman and Non-executive Directors is as follows:
Fees
Purpose and link to strategy 
To provide a competitive level of fee which will attract and retain 
high calibre directors with the range of skills and experience 
required to support the executive directors and assist the 
Company in delivering its objectives.
Operation
The fees for the Chairman and Non-executive Directors are 
determined by the Committee as a whole with directors absenting 
from discussions regarding their own remuneration.
The Board has regard to level of fees paid to the Non-executive 
Directors of other similar sized companies and the time 
commitment and responsibilities of the role.
Neither the Chairman nor the Non-executive Directors participate 
in any of the Company’s share schemes.
Terms of appointment
The Non-executive Directors have letters of appointment which 
are structured as follows:
1)  an initial term from a commencement date to the Company’s 
next annual general meeting. 
2)  thereafter the appointment can be terminated at any time 
by either party giving six month’s notice to the other and 
subject to the rotation rules detailed below. Details of 
appointment are set out below:
Director Original appointment date
Robert Sinclair 11 April 2007
Wessel Hamman 17 May 2011
Ian Clarke 26 July 2011
James Peggie 28 November 2012
Andrew Coombs 1 May 2014
Alistair Marks 1 May 2014
In accordance with the Articles of Incorporation of the 
Company, at each general meeting (a) any Director who was 
elected or last re-elected a Director at or before the AGM held 
in the third calendar year before the current year shall retire 
by rotation, and (b) such further Directors (if any) shall retire by 
rotation as would bring the number retiring by rotation up to 
one-third of the number of Directors in office at that date.
Annual report on remuneration
Remuneration committee membership and meetings
As at 31 March 2014, the Committee comprised three 
Non-executive Directors. The Committee met two times during 
the year. The members of the Committee during the year and 
as at the year end and their attendance are summarised below:
Committee member Meeting attendance
Wessel Hamman (Chairman) 2/2
Robert Sinclair 2/2
James Peggie 2/2
During the financial year, the Committee’s main 
responsibilities included:
 º
 confirming the bonus awards for the year ended 
31 March 2013;
 º
 setting the hurdle for the bonus awards for the bonus 
scheme for the year ending 31 March 2014;
 º
 considering the annual remuneration review for the 
Executive Directors and Senior Management Team; and
 º
 establishing, approving and amending the LTIP and SMP 
and making awards under these incentive schemes.
The Board considers that the membership of the Committee 
is compliant with the UK Corporate Governance Code 
recommendations. No individual is involved in determining 
their own remuneration. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 15
1
Strategic report
2
Governance
3
Financial statements
Remuneration
The amount of salary, bonus, benefits and fees payable to all Directors of the Company are set out in the following table:
Basic salary Bonus Benefits Pension Fees Total
Executive Directors:
Andrew Coombs €336,000 €177,914 €36,864 €36,000 €0 €586,778
Alistair Marks €225,600 €164,430 €24,424 €24,000 €0 €438,454
Non-executive Directors:
Robert Sinclair €0 €0 €0 €0 €100,000 €100,000
Wessel Hamman €0 €0 €0 €0 €0 €0
Ian Clarke €0 €0 €0 €0 €12,000 €12,000
James Peggie €0 €0 €0 €0 €0 €0
Rolf Elgeti €0 €0 €0 €0 €30,000 €30,000
No fees were paid to Non-executive Directors for membership of a committee or for attending committee meetings.
The value of shares that were issued to Executive Directors under the Company share awards schemes were as follows:
LTIP SMP Total
Executive Directors:
Andrew Coombs €120,000 €78,181 €198,181
Alistair Marks €120,000 €34,100 €154,100
Statement of Directors’ shareholdings
The table below summarises the interests in shares including those held in the SMP of the directors in office at the time 
of this report:
As at
31 March 2014
ordinary shares
As at
31 March 2013
ordinary shares
Executive Directors:
Andrew Coombs 1,879,740 441,832
Alistair Marks 1,800,143 204,373
Non-executive Directors:
Robert Sinclair 333,333 0
Wessel Hamman 155,000
*
155,000
*
Ian Clarke 0 0
James Peggie 552,678
**
0
Rolf Elgeti 0 0
There is no minimum shareholding requirement for the Executive Directors.
*
  Wessel Hamman represents the interests of the Karoo Investment Fund which currently hold 127,501,137 ordinary shares and a convertible loan which can 
be converted to 20,833,333 shares
**
  James Peggie represents the interests of the Principle Capital Group and its clients and those of Kevin and Frank Oppenheim, who collectively currently hold 
72,349,018 ordinary shares
By order of the Board
Wessel Hamman
Chairman of the Remuneration Committee Sirius Real Estate Limited  /  Annual Report And Accounts 2014 16
Directors’ report
The Directors submit their report with the audited financial 
statements for the year ended 31 March 2014. A review of the 
Group’s business and results for the year is contained in the 
Chairman’s statement which should be read in conjunction 
with this report.
The Directors have adopted the provisions of the Companies 
(Guernsey) Law, 2008 in preparing the financial statements.
The Directors submit their report together with the Group’s 
consolidated statement of comprehensive income, consolidated 
statement of financial position, consolidated statement of changes 
in equity, consolidated cash flow statement and related notes 
for the financial year ended 31 March 2014, which have been 
prepared in accordance with International Financial Reporting 
Standards (“IFRSs”) as adopted by the EU and in accordance 
with any relevant enactment for the time being in force and 
are in agreement with accounting records, which have been 
properly kept in accordance with Section 238 of the 
Companies (Guernsey) Law, 2008.
Business of the Group
Sirius Real Estate Limited is the Group’s holding company. 
The principal activity of its operating subsidiaries is the 
investment in, and development of, commercial property 
to provide flexible workspace in Germany.
Results for the year
These results are set out in the consolidated statement 
of changes in equity on page 22.
The Group’s profit attributable to the equity holders of the 
Parent Company for the year was €28.9m (2013: loss €30.2m). 
The Group intends to recommence the payment of a regular 
dividend, starting with a final dividend of 0.30c per share for 
the period. The final dividend will be paid on 22 August 2014 
to shareholders on the register as at 25 July 2014. The ex-dividend 
date will be 23 July 2014. Whilst only a modest payment at 
this stage, the 0.30c dividend represents 65% of the recurring 
profits
**
 after tax for the March 2014 quarter, following the 
capital raising completed in December. The Board has set a 
policy to pay a dividend equal to 65% of the recurring profits
**
 
after tax in respect of each financial year of the Group. It is 
intended that dividends will be paid on a semi-annual basis 
and offered to shareholders in cash or scrip form. 
Going concern
The accounts have been prepared on a going concern basis.
Valuation and net assets 
(i) Valuation
Cushman & Wakefield LLP (2013: DTZ Zadelhoff Tie Leung 
GmbH) valued the Group’s investment properties at €448.7m 
as at 31 March 2014 (2013: €440.0m). After adjusting investment 
properties reclassified as held for sale and lease incentive the value 
of investment properties is shown as €441.1m (2013: €410.5m) 
in the statement of financial position.
(ii) Net assets
The investment property valuation has been incorporated into 
the financial statements for the year ended 31 March 2014 and 
the net assets of the Group at that date amounted to €226.3m 
(2013: €151.0m).
Directors
Date appointed Date resigned
R A G Sinclair 11 April 2007
W J Hamman 17 May 2011
I G Clarke 26 July 2011 1 May 2014
R Elgeti 26 July 2011
J Peggie 28 November 2012
A J Coombs 1 May 2014
A B Marks 1 May 2014 
Robert Sinclair was appointed as Chairman on 15 July 2011.
Wessel Hamman is the Chairman of the Audit Committee.
Substantial shareholders
At 26 March 2014, the following shareholders had substantial 
interests in the issued share capital of the Company:
Shareholder
Number of
ordinary shares
in which
interested
% of
issued share
capital of the
 Company
Karoo Investment Fund 127,501,137 24.57%
Premier Fund Managers, Ltd 34,297,187 6.61%
Taube Hodson Stonex Partners 31,508,199 6.07%
F&C Asset Management 30,287,818 5.84%
Treasury operations and financial instruments 
The Group’s policy in relation to financial risk management 
and use of financial instruments is set out in note 21 to the 
financial statements.
Directors’ responsibilities
The Directors are required by the Companies (Guernsey) Law, 
2008 to prepare financial statements for each financial period, 
which give a true and fair view of the state of affairs of the 
Group as at the end of the financial period and of its profit or 
loss for that period. Under the law they have elected to prepare 
the financial statements in accordance with IFRSs as adopted 
by the EU and the applicable law. In preparing these financial 
statements, the Directors are required to:
 º
 select suitable accounting policies and then apply 
them consistently;
 º
 make judgements and estimates which are reasonable 
and prudent;
 º
 state whether applicable accounting standards have been 
followed, subject to any material departures disclosed and 
explained in the financial statements; and
 º
 prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the Company will 
continue in business. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 17
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Strategic report
2
Governance
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Financial statements
The Directors are responsible for keeping proper accounting 
records that disclose with reasonable accuracy at any time the 
financial position of the Group and enable them to ensure that 
the financial statements comply with the Companies (Guernsey) 
Law, 2008 and are in accordance with IFRSs as adopted by the 
EU. They are also responsible for safeguarding the assets of the 
Group and hence for taking reasonable steps for the prevention 
and detection of fraud and other irregularities.
Corporate governance
The Board of Directors
The Directors are responsible for the Group’s system of internal 
control and for reviewing its effectiveness. The risk management 
process and systems of internal control are designed to manage 
rather than eliminate the risk of failure to achieve the Group’s 
objectives. Any such system of internal control can only provide 
reasonable but not absolute assurance against material 
misstatement or loss.
Audit Committee
The Chairman of the Audit Committee is Wessel Hamman. 
The Audit Committee may examine any matters relating to 
the financial affairs of the Group and Group’ s audits. This includes 
reviews of the interim and annual financial statements and 
announcements. The Audit Committee is also responsible for 
the appointment, independence, terms of reference and fees 
of external auditors.
The membership of the Audit Committee comprises three 
Directors, Wessel Hamman, Robert Sinclair and James Peggie. 
The external auditors have direct access to members of the 
Committee for independent discussions.
Remuneration Committee
The Chairman of the Remuneration Committee is Wessel 
Hamman. The Committee comprises three Directors, Wessel 
Hamman, Robert Sinclair and James Peggie. It determines the 
terms and conditions of the employment and annual remuneration 
of the senior management and other senior employees of the 
business. To do this it consults with senior management, takes 
into consideration external data and has access to external 
professional advice.
The key policy objectives of the Remuneration Committee in 
respect of the Company’s senior management and other senior 
employees are:
 º
 to ensure that individuals are fairly rewarded for their personal 
contribution to the Group’s overall performance; and
 º
 to act as the independent committee ensuring that due 
regard is given to the interest of the Company’ s shareholders 
and to the financial health of the Group.
Nomination Committee
The Chairman of the Nomination Committee is James Peggie. 
The Committee comprises four Directors, James Peggie, 
Wessel Hamman, Robert Sinclair and Andrew Coombs. 
It is responsible for evaluating the workings and performance 
of the existing Board and nominating new Directors to become 
part of the Board as appropriate.
Auditors and disclosure of information to auditors
The Directors who held office at the date of approval of the 
financial statements confirm that, so far as they are each aware:
 º
 there is no relevant audit information of which the Group’s 
auditors are unaware; and
 º
 each Director has taken all the steps that he ought to have 
taken as a Director to make himself aware of any relevant 
audit information and to establish that the Group’s auditors 
are aware of that information.
KPMG Channel Islands Limited have indicated their willingness 
to continue in office as auditors and a resolution proposing their 
reappointment will be proposed at the Annual General Meeting.
By order of the Board
Intertrust Fund Services (Guernsey) Limited
Secretary Sirius Real Estate Limited  /  Annual Report And Accounts 2014 18
Contents
19 Independent auditors’ report
20 Consolidated statement of comprehensive income
21 Consolidated statement of financial position
22 Consolidated statement of changes in equity
23 Consolidated cash flow statement
24 Notes to the financial statements
IBC Corporate directory
Financial statements Annual Report and Accounts 2014  /  Sirius Real Estate Limited 19
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Strategic report
2
Governance
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Financial statements
To the members of Sirius Real Estate Limited
Independent auditors’ report
We have audited the Group financial statements (the “financial statements”) of Sirius Real Estate Limited (the “Company”, and 
together with its subsidiaries, the “Group”) for the year ended 31 March 2014 which comprise the consolidated statement of 
comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, the 
consolidated cash flow statement and the related notes. The financial reporting framework that has been applied in their 
preparation is applicable law and International Financial Reporting Standards as adopted by the EU. 
This report is made solely to the Company’s members, as a body, in accordance with Section 262 of the Companies (Guernsey) Law, 
2008. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to 
state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume 
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or 
for the opinions we have formed. 
Respective responsibilities of Directors and auditors
As explained more fully in the Statement of Directors’ Responsibilities set out on pages 16 and 17, the Directors are responsible 
for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to 
audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing 
(UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (“APB’s”) Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an 
assessment of: whether the accounting policies are appropriate to the Group’s circumstances and have been consistently applied 
and adequately disclosed; the reasonableness of significant accounting estimates made by the Board of Directors; and the overall 
presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report 
to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially 
incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we 
become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements:
 º
give a true and fair view of the state of the Group’s affairs as at 31 March 2014 and of its profit for the year then ended; 
 º
are in accordance with International Financial Reporting Standards as adopted by the EU; and 
 º
comply with the Companies (Guernsey) Law, 2008.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies (Guernsey) Law 2008 requires us to report 
to you if, in our opinion:
 º
the Company has not kept proper accounting records; or 
 º
the financial statements are not in agreement with the accounting records; or 
 º
 we have not received all the information and explanations, which to the best of our knowledge and belief are necessary for 
the purpose of our audit.
KPMG Channel Islands Limited
Chartered Accountants
Guernsey
13 June 2014
The maintenance and integrity of the Sirius Real Estate Limited website is the responsibility of the Directors; the work carried out 
by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes 
that may have occurred to the financial statements or audit report since they were initially presented on the website.
Legislation in Guernsey governing the preparation and dissemination of financial statements may differ from legislation in 
other jurisdictions. Sirius Real Estate Limited  /  Annual Report And Accounts 2014 20
For the year ended 31 March 2014
Consolidated statement of comprehensive income
Notes
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Gross rental income 5 45,065 46,115
Direct costs 6 (16,519) (16,889)
Net rental income 28,546 29,226
Surplus/(deficit) on revaluation of investment properties 13 22,735 (35,776)
Loss on disposal of properties (1,687) (1,201)
Administrative expenses 6 (4,043) (4,684)
Other expenses 6 (2,298) (2,411)
Operating profit/(loss) 43,253 (14,846)
Finance income 9 64 25
Finance expense 9 (12,155) (14,998)
Change in fair value of derivative financial instruments (128) 350
Profit/(loss) before tax 31,034 (29,469)
Taxation 10 (2,102) (783)
Profit/(loss) for the year 28,932 (30,252)
Profit/(loss) attributable to:
Owners of the Company 28,927 (30,227)
Non-controlling interests 5 (25)
Profit/(loss) for the year 28,932 (30,252)
Earnings per share
Basic earnings for the year attributable to ordinary equity holders of the Parent Company 11 7.31c (9.52)c
Diluted earnings for the year attributable to ordinary equity holders of the Parent Company 11 7.01c (9.52)c
The notes on pages 24 to 44 form an integral part of these financial statements. 1
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Annual Report and Accounts 2014  /  Sirius Real Estate Limited 21
Consolidated statement of financial position
Notes
2014
€000
2013
€000
Non-current assets
Investment properties 13 441,087 410,489
Plant and equipment 15 1,834 2,538
Goodwill 16 3,738 3,738
Total non-current assets 446,659 416,765
Current assets
Trade and other receivables 17 11,378 9,442
Prepayments 1,570 494
Derivative financial instruments 678 —
Cash and cash equivalents 18 13,747 16,718
Investment property held for sale 14 2,633 27,657
Total current assets 30,006 54,311
Total assets 476,665 471,076
Current liabilities
Trade and other payables 19 (20,980) (27,824)
Interest-bearing loans and borrowings 20 (2,813) (258,151)
Current tax liabilities (125) —
Derivative financial instruments (4) (197)
Total current liabilities (23,922) (286,172)
Non-current liabilities
Interest-bearing loans and borrowings 20 (222,071) (31,239)
Deferred tax liabilities 10 (4,200) (2,636)
Derivative financial instruments (170) —
Total non-current liabilities (226,441) (33,875)
Total liabilities (250,363) (320,047)
Net assets 226,302 151,029
Notes
2014
€000
2013
€000
Equity 
Issued share capital 23 — —
Other distributable reserve 24 349,978 303,637
Retained earnings (123,698) (152,625)
Total equity attributable to the equity holders of the Parent Company 226,280 151,012
Non-controlling interests 22 17
Total equity 226,302 151,029
The financial statements on pages 20 to 44 were approved by the Board of Directors on 13 June 2014 and were signed on its 
behalf by:
Wessel Hamman
Director
The notes on pages 24 to 44 form an integral part of these financial statements.
For the year ended 31 March 2014 Sirius Real Estate Limited  /  Annual Report And Accounts 2014 22
Consolidated statement of changes in equity
Group
Issued
share
capital
€000
Other
distributable
reserve
€000
Retained
earnings
€000
Total equity
attributable to
the equity
holders of
the Parent
Company
€000
Non-controlling
interests
€000
Total
equity
€000
As at 31 March 2012 — 303,625 (122,398) 181,227 42 181,269
Share-based payment transactions — 12 — 12 — 12
Loss for the year — — (30,227) (30,227) (25) (30,252)
As at 31 March 2013 — 303,637 (152,625) 151,012 17 151,029
Shares issued, net of costs — 45,438 — 45,438 — 45,438
Share-based payment transactions — 903 — 903 — 903
Profit for the year — — 28,927 28,927 5 28,932
As at 31 March 2014 — 349,978 (123,698) 226,280 22 226,302
The notes on pages 24 to 44 form an integral part of these financial statements. 
For the year ended 31 March 2014 1
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Annual Report and Accounts 2014  /  Sirius Real Estate Limited 23
For the year ended 31 March 2014
Consolidated cash flow statement
Notes
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Operating activities
Profit/(loss) before tax 31,034 (29,469)
Loss on sale of properties 1,687 1,201
Share-based payments 904 12
(Surplus)/deficit on revaluation of investment properties 13 (22,735) 35,776
Change in fair value of derivative financial instruments 128 (350)
Depreciation 6 995 1,032
Finance income 9 (64) (25)
Finance expense 9 12,155 14,998
Cash flows from operations before changes in working capital 24,104 23,175
Changes in working capital
(Increase)/decrease in trade and other receivables (3,925) 111
Decrease in trade and other payables (1,464) (329)
Taxation paid (191) (590)
Cash flows from operating activities 18,524 22,367
Investing activities
Development expenditure (4,260) (3,531)
Purchase of plant and equipment (391) (132)
Proceeds on disposal of properties 14,811 20,450
Interest received 64 25
Cash flows used in investing activities 10,224 16,812
Financing activities
Issue of shares 45,438 —
Proceeds from loans 193,560 33,500
Repayment of loans (259,838) (51,010)
Finance charges paid (10,879) (14,096)
Cash flows from financing activities (31,719) (31,606)
(Decrease)/increase in cash and cash equivalents (2,971) 7,573
Cash and cash equivalents at the beginning of the year 16,718 9,145
Cash and cash equivalents at the end of the year 18 13,747 16,718
The notes on pages 24 to 44 form an integral part of these financial statements.  Notes to the financial statements
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 24
For the year ended 31 March 2014
Notes to the financial statements
1. General information
Sirius Real Estate Limited (the “Company”) is a company incorporated and domiciled in Guernsey whose shares are publicly 
traded on AIM.
The consolidated financial statements of Sirius Real Estate Limited comprise the Company and its subsidiaries (together referred 
to as the “Group”). The Group financial statements have been prepared for the year ended 31 March 2014.
The principal activity of the Group is the investment in and development of commercial property to provide flexible workspace 
in Germany.
2. Significant accounting policies
(a) Basis of preparation
The consolidated financial statements have been prepared on a historical cost basis, except for investment properties, investment 
properties held for sale and derivative financial instruments which have been measured at fair value. The consolidated financial 
statements are presented in euros and all values are rounded to the nearest thousand (€000) except where otherwise indicated.
The consolidated financial statements of the Group for the year ended 31 March 2014 have been prepared in accordance with IFRSs 
adopted for use in the EU (“Adopted IFRSs”) and the Companies (Guernsey) Law 2008. Having reviewed the Group’s current trading 
and forecasts, together with sensitivities and mitigating factors and the available facilities, the Board has reasonable expectations 
that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Board 
continues to adopt the going concern basis in preparing these financial statements.
(b) Statement of compliance
The consolidated financial statements have been prepared in accordance with IFRSs adopted for use in the EU (“Adopted IFRSs”) 
and the Companies (Guernsey) Law, 2008. The consolidated financial statements give a true and fair view and are in compliance 
with the Companies (Guernsey) Law, 2008.
The consolidated financial statements were authorised for issue by the Board of Directors on 13 June 2014.
(c) Going Concern
Having reviewed the Group’s current trading and forecasts, together with sensitivities and mitigating factors and the available 
facilities, the Board has reasonable expectations that the Group has adequate resources to continue in operational existence for 
the foreseeable future. Accordingly, the Board continues to adopt the going concern basis in preparing these financial statements.
(d) Basis of consolidation
The consolidated financial statements comprise the financial statements of Sirius Real Estate Limited and its subsidiaries as at 
31 March 2014. The financial statements of the subsidiaries are prepared for the same reporting period as the Parent Company, 
using consistent accounting policies.
All intragroup balances and transactions and any unrealised income and expenses arising from intragroup transactions are eliminated 
in preparing the consolidated financial statements.
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Group obtains control, and continue 
to be consolidated until the date that such control ceases.
Non-controlling interests represent the portion of profit or loss and net assets not held by the Group and are presented separately 
in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, 
separately from parent shareholders’ equity.
(e) Single statement of comprehensive income 
The Group has chosen to present a single statement of comprehensive income (combining the income statement and a statement 
of comprehensive income). 
(f) Acquisitions
Property acquisitions that are not accounted for as business combinations under IFRS 3 are dealt with as acquisitions of property assets.
(g) Foreign currency translation
The consolidated financial statements are presented in euros, which is the functional and presentational currency of all the 
Group’s subsidiaries.
Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the transaction. 
Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange 
ruling at the statement of financial position date. All differences are taken to the statement of comprehensive income. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 25
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(h) Revenue recognition 
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can 
be reliably measured. In particular:
Rental income
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless another 
systematic basis is more representative of the time pattern in which the benefit derived from the leased asset is diminished.
Fixed or determinable rental increases which can take the form of actual amounts or agreed percentages are recognised on 
a straight-line basis over the term of the lease. If the increases are related to a price index to cover inflationary cost increases 
then the policy is not to spread the amount but to recognise them when the increase takes place.
The value of rent free periods and all similar lease incentives are spread on a straight-line basis over the term of the lease.
Interest income
Interest income is recognised as it accrues (using the effective interest method that is the rate that exactly discounts estimated 
future cash receipts through the expected life of the financial instrument).
Service charges
The service charge income receivable is not treated as revenue; rather it is set off against the costs to which such income relates.
(i) Leases
Group as lessor
Leases where the Group does not transfer substantially all the risks and benefits of ownership of the asset are classified 
as operating leases. 
(j) Income tax
Current income tax
Current income tax assets and liabilities are measured at the reporting date at the amount expected to be recovered from or paid 
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively 
enacted by the reporting date.
The Company has obtained exempt company status in Guernsey under the terms of the Income Tax (Exempt Bodies) Ordinance, 1989. 
The Directors intend to conduct the Company’s affairs so that they remain eligible for exemption. 
Certain subsidiaries may be subject to foreign taxes in respect of foreign sources of income.
Deferred income tax
Deferred income tax is recognised on all temporary differences arising between the tax bases of assets and liabilities and their 
carrying amounts in the consolidated financial statements, with the following exceptions:
 º
 where the temporary difference arises from the initial recognition of goodwill, or of an asset, or liability in a transaction that 
is not a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss;
 º
 in respect of taxable temporary differences associated with investments in subsidiaries, where the timing of the reversal of the 
temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable 
future; and 
 º
 deferred tax assets are only recognised to the extent that it is foreseeable that taxable profit will be available against which the 
deductible temporary differences, carried forward tax credits or tax losses can be utilised.
Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax rates that are expected to apply 
to the year when the related asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted 
or substantively enacted at the reporting date.
(k) Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
 º
 where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case 
the sales tax is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and 
 º
receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables 
in the statement of financial position. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 26
2. Significant accounting policies continued
(l) Investment properties
Investment properties are properties owned by the Group which are held either for long-term rental income or for capital 
appreciation or both.
Investment properties are initially recognised at cost, including transaction costs. The carrying amount includes the cost of replacing 
part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs 
of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, 
which reflects market conditions at the reporting date. 
Gains or losses arising from changes in the fair values of investment properties are included in the statement of comprehensive 
income in the period in which they arise.
The fair value of the Group’s investment properties at 31 March 2014 has been arrived at on the basis of a valuation carried out 
at that date by Cushman & Wakefield LLP (prior year: DTZ Zadelhoff Tie Leung GmbH), an independent valuer.
The valuations are in accordance with standards complying with the Royal Institution of Chartered Surveyors’ (“RICS”) approval 
and the conceptual framework that has been settled by the International Valuation Standards Committee (“IVSC”).
(m) Disposals of investment property
Investment property disposals are recognised in the financial statements on the date of completion. Profit or losses arising 
on disposal of investment properties are calculated by reference to the carrying value of the asset at the beginning of the year 
adjusted for subsequent capital expenditure.
(n) Investment property under construction
Property that is being constructed or developed for future use as investment property is accounted for as an investment property 
under construction until construction or development is complete and which is then reclassified as investment property.
Investment property under construction will be carried at fair value at the earlier of when the fair value first becomes reliably 
measurable and the date of completion of the property. Any gain or loss will be recognised in the statement of comprehensive 
income, consistent with the policy adopted for all other investment properties carried at fair value. 
(o) Plant and equipment
Recognition and measurement
Items of plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Depreciation
Where parts of an item of plant and equipment have different useful lives, they are accounted for as separate items of plant 
and equipment.
Depreciation is charged in the statement of comprehensive income on a straight-line basis over the estimated useful lives of each 
part of an item of the fixed assets. The estimated useful lives are as follows:
Plant and equipment four to ten years
Fixtures and fittings four years
Computer software five years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
(p) Goodwill
Goodwill arising on consolidation represents the excess of the cost of the purchase consideration over the Group’s interest in the 
fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition.
Goodwill is initially recognised at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill 
is not amortised but is tested for impairment at least annually or more frequently when there is an indication that the unit may 
be impaired. For the purpose of impairment testing, goodwill is allocated to each of the Group’s cash-generating units to which 
goodwill has been allocated.
(q) Investment properties held for sale
Non-current assets that are expected to be recovered primarily through disposal rather than through continuing use are classified 
as held for sale. For this to be the case, the asset must be available for immediate disposal in its present condition subject only 
to terms that are usual and customary for disposals of such assets and its disposal must be highly probable.
Immediately before classification as held for sale the assets are measured in line with the Group’s accounting policies. Thereafter the 
assets are measured at the lower of their carrying amount and fair value less costs to sell. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 27
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(r) Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest 
method, less an allowance for impairment (see note 2(z) (i)).
(s) Treasury shares
Own equity instruments which are reacquired (“Treasury Shares”) are deducted from equity. No gain or loss is recognised in the 
statement of comprehensive income on the purchase, sale, issue or cancellation of the Group’s equity instruments.
(t) Share-based payments
The grant date fair value of share-based payments awards granted to employees is recognised as an employee expense 
and corresponding increase in equity, over the period that the employees unconditionally become entitled to the awards.
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market 
vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number 
of awards that meet the related service and non-market performance conditions at the vesting date.
(u) Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, demand deposits and other short-term, highly liquid investments 
with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an 
insignificant risk of change in value.
(v) Bank borrowings
Interest-bearing bank loans and borrowings are initially recorded at fair value, net of direct issue costs. 
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective 
interest method. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised 
as well as through the amortisation process.
(w) Trade payables
Trade payables are initially measured at fair value and are subsequently measured at amortised cost, using the effective interest 
rate method.
(x) Equity instruments
Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
(y) Dividends
Dividend distributions to the Company’s shareholders are recognised as a liability in the consolidated financial statements in the 
period in which the dividends are approved by the Company’s shareholders.
(z) Impairment excluding investment properties
(i) Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. 
A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect 
on the estimated future cash flows of that asset. Objective evidence of impairment includes observable data that comes to the 
attention of the Group about one or more of the following loss events:
 º
significant financial difficulty of the debtor;
 º
a breach of contract, such as a default or delinquency in interest or principal payments; and
 º
it becomes probable that the debtor will enter bankruptcy or other financial reorganisation.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying 
amount and the present value of the estimated future cash flows discounted at the original effective interest rate. 
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed 
collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in the statement of comprehensive income. Any cumulative loss in respect of an available 
for sale financial asset recognised previously in equity is transferred to the statement of comprehensive income.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. 
For financial assets measured at amortised cost, the reversal is recognised in the statement of comprehensive income.  Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 28
2. Significant accounting policies continued
(z) Impairment excluding investment properties continued
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property and deferred tax assets, are reviewed 
at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s 
recoverable amount is estimated. 
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. 
In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that 
reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment 
testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are 
largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable 
amount. Impairment losses are recognised in the statement of comprehensive income. Impairment losses recognised in respect 
of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to 
reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
(aa) Derivative financial instruments
The Group uses derivative financial instruments such as interest rate swaps and caps to hedge its risks associated with interest rate 
fluctuations. The interest rate swaps and caps are initially recognised at fair value on the date on which a derivative contract is entered 
into and are subsequently remeasured at fair value on the reporting date. Derivatives are carried as assets when the fair value is 
positive and as liabilities when the fair value is negative.
The Group does not apply hedge accounting to its interest rate swaps and caps. Any change in the fair value of such derivatives 
is recognised immediately in the statement of comprehensive income as a finance expense or finance income as appropriate.
(ab) Compound financial instruments
Compound financial instruments issued by the Group comprise convertible notes denominated in euro that can be converted 
to share capital at the option of the holder, when the number of shares to be issued is fixed.
The liability component of a compound financial instrument is recognised initially at the fair value of a similar liability that does 
not have an equity conversion option. The equity component is recognised initially at the difference between the fair value of the 
compound financial instrument as a whole and the fair value of the liability component. Any directly attributable transaction costs 
are allocated to the liability and equity components in proportion to their initial carrying amounts.
Subsequent to initial recognition, the liability component of a compound financial instrument is measured at amortised cost 
using the effective interest method. The equity component of a compound financial instrument is not remeasured subsequent 
to initial recognition.
Interest related to the financial liability is recognised in profit or loss. On conversion, the financial liability is reclassified to equity 
and no gain or loss is recognised.
(ac) Standards effective in the year
The accounting policies adopted are consistent with those of the previous financial year, except that the following new standards 
have been adopted in the current year:
 º
 In May 2011, the IASB issued IFRS 10 ‘Consolidated Financial Statements’ (2011). IFRS 10 (2011) introduces a new control model 
that is applicable to all investees, by focusing on whether the Group has power over an investee, exposure or rights to variable 
returns from its involvement with the investee and ability to use its power to affect those returns. As a result of IFRS 10 (2011), 
the Group has changed its accounting policy for determining whether it has control over and consequently whether it consolidates 
its investees. The Group reassessed the control conclusion for its investees at 1 April 2013 and concluded that it does not change 
the companies consolidated within the Group and therefore has no impact on the financial statements as presented.
 º
 In May 2011, the IASB issued IFRS 12 ‘Disclosure of Involvement with Other Entities’. IFRS 12 includes all the disclosures which 
were previously required by IAS 27 related to consolidated financial statements, as well as all of the disclosures that were previously 
included in IAS 31 and IAS 28. These disclosures relate to an entity’s interests in subsidiaries, joint arrangements, associates and 
structured entities. The adoption of IFRS 10 and 12, from 1 April 2013, has no significant impact on the Group accounts, method 
of consolidation or disclosures presented.
 º
 In May 2011, the IASB issued IFRS 13 ‘Fair Value Measurement’. IFRS 13 establishes a single source of guidance under IFRS for 
all fair value measurements. IFRS 13 does not change when an entity is required to use fair value, but rather provides guidance 
on how to measure fair value under IFRS when fair value is required or permitted. A number of additional disclosures are required 
and are included in note 13. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 29
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(ad) Standards and interpretations in issue and not yet effective
IFRS 9 ‘Financial Instruments’ – In November 2009 and October 2010, the IASB issued IFRS 9 ‘Financial Instruments’ which represents 
part of a project to replace IAS 39 ‘Financial Instruments: Recognition and Measurement’. It replaces the parts of IAS 39 that relate 
to the classification and measurement of financial instruments. IFRS 9 requires financial assets to be classified into two measurement 
categories: those measured as at fair value and those measured at amortised cost. The determination is made at initial recognition. 
The classification depends on the entity’s business model for managing its financial instruments and the contractual cash flow 
characteristics of the instrument. For financial liabilities, the standard retains most of the IAS 39 requirements. The main change 
is that, in cases where the fair value option is taken for financial liabilities, the part of a fair value change due to an entity’s own 
credit risk is recorded in other comprehensive income rather than the income statement, unless this creates an accounting mismatch. 
The IASB currently has an active project to make limited amendments to the classification and measurement requirements of IFRS 9 
and to add new requirements to address the impairment of financial assets and hedge accounting. A final standard in relation to 
hedge accounting is now in issue. IFRS 9 will not be effective before 1 January 2017, with the final effective date being determined 
by the IASB when other parts of IFRS are finalised, but may be applied earlier subject to EU endorsement. The Group has yet to 
assess IFRS 9’s full impact and will also consider the impact of the remaining phases of IFRS 9 when completed by the IASB.
Amendment to IAS 32 ‘Offsetting Financial Assets and Financial Liabilities’ – The amendments clarify the offsetting criteria, specifically 
when an entity currently has a legal right of set-off and when gross settlement is equivalent to net settlement. An entity ‘currently 
has a legally enforceable right of setoff’ if the right is not contingent on a future event and enforceable in both the normal course 
of business and in the event of default, insolvency or bankruptcy of the entity and all of the counterparties. Gross settlement is 
equivalent to net settlement if and only if the gross settlement mechanism has features that eliminate and result in insignificant 
credit and liquidity risk and process receivables and payables in a single settlement process or cycle. This amendment is effective 
for the annual period beginning on or after 1 January 2014. The Directors anticipate that the adoption of these standards and 
interpretations in future periods will not have a material impact on the financial statements of the Group. The Group does not 
plan to adopt these standards early and the extent of the impact has not been determined.
3. Significant accounting judgements, estimates and assumptions
Judgements
In the process of applying the Group’s accounting policies, which are described in note 2, the Directors have made the following 
judgements that have the most significant effect on the amounts recognised in the financial statements:
Operating lease commitments – Group as lessor
The Group has entered into commercial property leases on its investment property portfolio. The Group has determined that it retains 
all the significant risks and rewards of ownership of these properties and therefore accounts for them as operating leases.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a 
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year 
are discussed below.
Valuation of investment properties
The fair value of the Group’ s investment properties of €448.7 million (2013: €440.0 million) was determined by Cushman & Wakefield LLP 
(prior year: DTZ Zadelhoff Tie Leung GmbH), an independent valuer. After adjusting investment properties reclassified as held for sale 
and lease incentive accounting, the value of investment properties is shown as €441.1 million. The valuation is based upon assumptions 
including future rental income, anticipated maintenance costs and the appropriate discount rate. The properties are valued on the 
basis of a ten year discounted cash flow model supported by comparable evidence. The discounted cash flow calculation is a valuation 
of rental income considering nonrecoverable costs and applying a discount rate for the current income risk over a ten year period. 
After ten years a determining residual value (exit scenario) is calculated. A cap rate is applied to the more uncertain future income, 
discounted to a present value.
As a result of the level of judgement used in arriving at the market valuations, the amounts which may ultimately be realised 
in respect of any given property may differ from the valuations shown on the statement of financial position.
Fair value of derivatives and other financial instruments
The Group’s interest rate swaps and caps are shown in these financial statements (note 22) at fair value based on valuations prepared 
by relevant banks. Such valuations are based on market prices, estimated future cash flows and forward rate as appropriate. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 30
3. Significant accounting judgements, estimates and assumptions continued
Deferred tax
Deferred taxation is measured at rates prevailing at the balance sheet date. Such rates are subject to governmental changes which 
are outside the control of the entity.
Additionally management has to assess the recoverability of deferred tax assets and certain assets are not recognised due to 
uncertainties over the timing and nature of future events that will lead to their realisation. Accordingly these unrecognised assets 
may have an impact on future corporate tax changes in certain circumstances.
Impairment of goodwill
The Group is required to test on an annual basis whether goodwill has suffered any impairment. The assessment and quantification 
of any such impairment charges is determined by key management judgements in terms of:
 º
detailed short-term budgeting on which the recoverable amounts calculated are based;
 º
 determining the medium and long-term growth rates which are used in extrapolating these budgets over the goodwill’s 
indefinite useful economic life; and
 º
the discount rate applied to these extrapolated forecasts to calculate the present value of the cash flows. 
4. Operating segments
Segment information is presented in respect of the Group’s operating segments. The operating segments are based on the Group’s 
management and internal reporting structure. Segment results and assets include items directly attributable to a segment as well 
as those that can be allocated to a segment on a reasonable basis.
Management considers that there is only one geographical segment which is Germany and one reporting segment which 
is investment in commercial property.
5. Revenue
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Rental income from investment properties 45,065 46,115
6. Operating profit/(loss)
The following items have been charged or credited in arriving at operating loss:
Direct costs
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Service charge income (33,965) (31,306)
Service charge expenditure and other costs 50,391 48,075
Irrecoverable property costs 16,426 16,769
Property management fee 93 120
16,519 16,889
Administrative expenses
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Audit fee 352 319
Legal and professional fees 1,270 2,056
Other administration costs 1,186 772
Non-recurring costs 1,235 1,537
4,043 4,684
During the year fees of €111,803 (2013: €118,069) were incurred with the auditors and their associates in respect of other 
non-audit services.
Non-recurring costs relate primarily to loan extension fees associated with the debt facility with ABN Amro Bank N.V. and early 
payment penalties associated with the refinancing of the debt facility with Berlin-Hannoversche Hypothekenbank AG. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 31
1
Strategic report
2
Governance
3
Financial statements
6. Operating profit/(loss) continued
Other expenses
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Directors’ fees 142 201
Depreciation 995 1,032
Bank fees 84 128
Marketing, insurance and other expenses 1,077 1,050
2,298 2,411
7. Employee costs and numbers
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Wages and salaries 8,080 7,193
Social security costs 1,752 1,607
Other employment costs 25 14
9,857 8,814
Since the internalisation of the Asset Management Agreement on 30 January 2012, all employees are now employed directly by 
the Group. The average number of persons employed by the Group during the year was 151 (2013: 145), expressed in full-time 
equivalents. In addition the Board of Directors consists of five Non-Executive Directors, and since 1 May 2014, two Executive Directors 
with one Non-executive Director stepping down.
8. Equity-settled share-based payments
The Group has a long-term incentive scheme for the benefit of certain key management personnel. As a result, 1,000,000 shares were 
granted in the scheme as of 31 March 2014. An expense of €240,000 was recognised in the consolidated statement of comprehensive 
income to 31 March 2014.
During the year, a further 2,703,093 shares were issued to the Company’s management through its share matching scheme and 
shares taken in lieu of bonus. An expense of €663,000 was recognised in the consolidated statement of comprehensive income.
9. Finance income and expense
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Bank interest income 64 25
Finance income 64 25
Bank interest expense (10,879) (14,096)
Amortisation of capitalised finance costs (1,276) (902)
Finance expense (12,155) (14,998)
10. Taxation
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Current income tax
Current income tax charge (538) (327)
Adjustment in respect of prior periods — 65
(538) (262)
Deferred tax
Relating to origination and reversal of temporary differences (1,564) (521)
Income tax charge reported in the statement of comprehensive income (2,102) (783) Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 32
10. Taxation continued
The income tax rate applicable to the Company in Guernsey is nil. The current income tax charge of €538,074 represents tax 
charges on profit arising in Germany that is subject to corporate income tax of 15.825%. The effective income tax rate for the 
period differs from the standard rate of corporation tax in Germany. The differences are explained below:
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Profit/(loss) before tax 31,034 (29,469)
Profit/(loss) before tax multiplied by rate of corporation tax in Germany of 15.825% (2013: 15.825%) 4,911 (4,663)
Effects of:
Income exempt from tax (3,181) (3,699)
Expenses deductible for tax purposes (1,626) (3,793)
Non-taxable items including revaluation movements (3,686) 6,066
Tax losses utilised (903) (225)
Tax losses not utilised 4,937 6,584
Relating to origination and reversal of temporary differences 1,564 521
Adjustments in respect of prior periods — (65)
Other 86 57
Total income tax expense in the statement of comprehensive income 2,102 783
Deferred tax liability
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Opening balance 2,636 2,115
Release due to disposals — (43)
Revaluation of investment properties and derivative financial instruments to fair value 1,564 564
Balance as at year end 4,200 2,636
The Group has tax losses of €166,412,032 (2013: €144,592,914) that are available for offset against future profits of its subsidiaries 
in which the losses arose. Deferred tax assets have not been recognised in respect of the revaluation losses on investment properties 
and interest rate swaps as they may not be used to offset taxable profits elsewhere in the Group as realisation is not assured. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 33
1
Strategic report
2
Governance
3
Financial statements
11. Earnings per share
The calculation of the basic, diluted and adjusted earnings per share is based on the following data:
Year ended
31 March 2014
€000
Year ended
31 March 2013
€000
Earnings
Basic earnings 28,927 (30,227)
Diluted earnings 29,184 (30,227)
Adjusted 
Basic earnings 28,927 (30,227)
Deduct valuation surplus/Add back revaluation deficits (net of related tax) (21,171) 36,296
Add back change in fair value of derivative instruments 128 (350)
Add back non-recurring expenses 1,235 1,537
Add back loss on sale of properties 1,687 1,201
Adjusted earnings 10,806 8,457
Number of shares
Weighted average number of ordinary shares for the purpose of basic earnings per share 395,758,526 317,559,843
Weighted average number of ordinary shares for the purpose of diluted earnings per share 416,591,859 317,559,843
Weighted average number of ordinary shares for the purpose of adjusted earnings per share 395,758,526 317,559,843
Basic earnings per share 7.31c (9.52)c
Diluted earnings per share 7.01c (9.52)c
Adjusted earnings per share 2.73c 2.66c
The number of shares has been reduced by 6,518,731 shares that are held by the Company as Treasury Shares at 31 March 2014, 
for the calculation of basic and adjusted earnings per share.
The Directors have chosen to disclose adjusted earnings per share in order to provide a better indication of the Group’s underlying 
business performance; accordingly it excludes the effect of non-recurring costs, gains/losses on sale of properties, deferred tax 
and the revaluation deficits/surpluses on the investment properties and derivative instruments.
12. Net assets per share
2014
€000
2013
€000
Net assets
Net assets for the purpose of assets per share (assets attributable to the equity holders of the parent) 226,280 151,012
Deferred tax arising on revaluation of properties 4,200 2,636
Derivative financial instruments (504) 197
Adjusted net assets attributable to equity holders of the parent 229,976 153,845
Number of shares
Number of ordinary shares for the purpose of net assets per share 518,900,307 317,578,176
Net assets per share 43.61c 47.55c
Adjusted net assets per share 44.32c 48.44c
The number of shares has been reduced by 6,518,731 shares that are held by the Company as Treasury Shares at 31 March 2014, 
for the calculation of adjusted net assets per share. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 34
13. Investment properties
A reconciliation of the valuation carried out by the external valuer to the carrying values shown in the statement of financial 
position is as follows:
2014
€000
2013
€000
Investment properties at market value 448,653 440,020
Adjustment in respect of lease incentives (1,902) (2,132)
Additional write-downs
*
(3,031) (1,795)
Reclassified as investment properties held for sale (2,633) (25,604)
Balance as at year end 441,087 410,489
*
  This relates to two non-core assets which management hopes to sell in the year but which currently do not meet the criteria for assets held for sale. The write down 
adjusts the value to the expected sales price.
The fair value of the Group’s investment properties at 31 March 2014 has been arrived at on the basis of a valuation carried out 
by Cushman & Wakefield LLP (prior year: DTZ Zadelhoff Tie Leung GmbH), an independent valuer.
The value of each of the properties has been assessed in accordance with the RICS Valuation Standards on the basis of market value. 
Market value was primarily derived using a ten year discounted cash flow model supported by comparable evidence. The discounted 
cash flow calculation is a valuation of rental income considering nonrecoverable costs and applying a discount rate for the current 
income risk over a ten year period. After ten years a determining residual value (exit scenario) is calculated. A cap rate is applied 
to the more uncertain future income, discounted to a present value.
The weighted average lease duration was 2.6 years.
The movement on the valuation of the investment properties of market value per the valuers’ report is as follows:
2014
€000
2013
€000
Total investment properties at market per valuers’ report as at 1 April 440,020 485,740
Additions and subsequent expenditure 4,325 4,145
Adjustment in respect of lease incentives (230) 232
Disposals (18,197) (15,500)
Reclassified as investment properties held for sale not included in valuation — (5,380)
Surplus/(deficit) on revaluation 22,735 (35,776)
Write-downs to selling price recorded in deficit on revaluation — 6,559
Total investment properties at market per valuers’ report as at 31 March 448,653 440,020
Other than the capital commitments disclosed in note 27, the Group is under no contractual obligation to purchase, construct or 
develop any investment property. The Group is responsible for routine maintenance to the investment properties.
All investment properties are categorised as Level 3 fair values as they use significant unobservable inputs. There have not been 
any transfers between levels during the year. Investment properties have been classed according to their real estate sector. 
Information on these significant unobservable inputs per class of investment property is disclosed below:
Sector Market value (€) Technique Significant assumption Range
Business park 426,970,000 Discounted cash flow Current rental income €91k–€5,059k
Market rental income €372k–€6,041k
Gross initial yield 2.2%–10.9%
Discount factor 6.5%–11.8%
Void period (months) 12–24
Estimated capital value per sqm €83–€815
Other 21,683,000 Discounted cash flow Current rental income €38k–€800k
Market rental income €56k–€928k
Gross initial yield 6.2%–8.8%
Discount factor 7.3%–11.0%
Void period (months) 12–24
Estimated capital value per sqm €287–€840 Annual Report and Accounts 2014  /  Sirius Real Estate Limited 35
1
Strategic report
2
Governance
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Financial statements
13. Investment properties continued
The valuation is done on a lease by lease basis due to the mixed use nature of the sites. This gives rise to large ranges in the inputs.
As a result of the level of judgement used in arriving at the market valuations, the amounts which may ultimately be realised in 
respect of any given property may differ from the valuations shown in the statement of financial position.
For example, an increase in market rental values of 5% would lead to an increase in the fair value of the investment properties of 
€23,011,000 and a decrease in market rental values of 5% would lead to a decrease in the fair value of the investment properties 
of €23,120,000. Similarly, an increase in the discount rates of 0.25% would lead to an increase in the fair value of the investment 
properties of €8,565,000 and a decrease in the discount rates of 0.25% would lead to a decrease in the fair value of the investment 
properties of €8,306,000. 
The highest and best use of properties do not differ from their current use.
14. Investment properties held for sale
2014
€000
2013
€000
Bremen-Brinkmann land — 187
Bremen Doetlingerstr. partial (prior year: full) site 2,150 8,653
Berlin Gartenfeldstr. land — 1,975
Merseburg McDonalds building — 1,029
Bonn Siemensstr. land 186 186
Cottbus site 297 297
Regensburg site — 6,287
Rostock Goethestr. site — 965
Bremen Rigaerstr. site — 3,000
Investment properties held for sale included in year end valuation 2,633 22,579
Leinfelden-Echterdingen site not included in year end valuation — 5,078
Balance as at year end 2,633 27,657
In December 2012, the Company reached an agreement to dispose of the property at the Bremen Doetlingerstr. site for €8,750,000. 
The non-core site consists of four buildings used for office and retail with net lettable area of 10,618 sqm. The agreement was 
withdrawn in October 2013. On 5 December 2013, the Company notarised the sale of a partial plot on this site consisting of 
4,736 sqm. This plot of land currently has a completely vacant building on it which is to be demolished in order that the purchaser 
can build a new Aldi supermarket.
At 30 October 2012, the Company reached an agreement to dispose of 2,743 sqm of land at the Bonn Siemensstr. site for €186,725. 
The disposal has been notarised and, subject to being included on the land register, it will be completed in the next period.
On 22 March 2013, the Company sold the property at the Cottbus site for €300,000. The site, which is a mixeduse site with office 
and storage space, is 76% occupied with current annual rent of €43,440 and net lettable area of 1,057 sqm. The transaction has 
been notarised and will close in the next period. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 36
15. Plant and equipment
Plant and
equipment
€000
Fixtures
and fittings
€000
Total
€000
Cost
As at 31 March 2013 4,129 1,709 5,838
Additions in year 129 276 446
Disposals in year (65) (363) (469)
As at 31 March 2014 4,193 1,622 5,815
Depreciation
As at 31 March 2013 (2,248) (1,052) (3,300)
Charge for the year (656) (328) (995)
Disposals in year 42 261 314
As at 31 March 2014 (2,862) (1,119) (3,981)
Net book value as at 31 March 2014 1,331 503 1,834
Cost
As at 31 March 2012 4,156 1,644 5,800
Additions in year 45 153 198
Disposals in year (72) (88) (160)
As at 31 March 2013 4,129 1,709 5,838
Depreciation
As at 31 March 2012 (1,680) (682) (2,362)
Charge for the year (613) (419) (1,032)
Disposals in year 45 49 94
As at 31 March 2013 (2,248) (1,052) (3,300)
Net book value as at 31 March 2013 1,881 657 2,538
16. Goodwill
2014
€000
2013
€000
Opening balance 3,738 3,738
Additions — —
Total 3,738 3,738
On 30 January 2012 a transaction was completed to internalise the Asset Management Agreement and as a result of the consideration 
given exceeding the net assets acquired, goodwill of €3,738,000 was recognised. Current business plans indicate that the balance 
is unimpaired.
Goodwill is tested at least annually for impairment and whenever there are indications that goodwill might be impaired. 
The recoverable amount of a cash-generating unit is based on its value in use. Value in use is the present value of the projected 
cash flows of the cash-generating unit. The key assumptions regarding the value in use calculations were budgeted growth in 
profit margins and the discount rate applied. Budgeted profit margins were estimated based on actual performance over the past 
two financial years and expected market changes. The discount rate used is a pretax rate and reflects the risks specific to the real 
estate industry. The Group prepares cash flow forecasts based on the most recent financial budget approved by management, 
which covers a one year period. Cash flows beyond this period are extrapolated to a period of five years using a growth rate of 
2%, which is consistent with the long-term average growth rate for the real estate sector. The discount rate applied was 6.5%. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 37
1
Strategic report
2
Governance
3
Financial statements
17. Trade and other receivables
2014
€000
2013
€000
Trade receivables 4,545 3,790
Other receivables 6,652 5,642
Related party receivable (see note 26) 181 10
11,378 9,442
18. Cash and cash equivalents
2014
€000
2013
€000
Cash at banks and in hand 13,747 16,718
Cash at banks earns interest at floating rates based on daily bank deposit rates. The fair value of cash is €13,747,138  
(2013: €16,718,288).
As at 31 March 2014 €6,734,622 (2013: €8,995,249) of cash is held in blocked accounts. Of this, balances relating to deposits 
received from tenants total €3,032,188 (2013: €2,651,345). An amount of €15,546 (2013: €15,522) relates to funds held on an 
escrow account for a supplier and €116,144 (2013: €115,503) is held in a restricted account for office rent deposit. An amount 
of €2,070,744 (2013: €6,212,879) relates to amounts reserved for future bank loan interest and amortisation payments on the 
bank loan facilities. An amount of €1,500,000 (2013: €nil) relates to funds held on an escrow account for a possible acquisition 
of further assets.
19. Trade and other payables
2014
€000
2013
€000
Trade payables 5,318 6,658
Accrued expenses 6,983 7,512
Accrued interest 707 596
Other payables 7,972 13,058
20,980 27,824 Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 38
20. Interest-bearing loans and borrowings
Effective
interest
rate
% Maturity
2014
€000
2013
€000
Current
ABN Amro loan 
– floating rate facility Floating 17 December 2013 — 49,201
Berlin-Hannoversche Hypothekenbank AG
– floating rate facility Floating 31 March 2014 — 208,688
Berlin-Hannoversche Hypothekenbank AG/Deutsche 
Pfandbriefbank AG
– capped floating rate facility Capped floating
*
31 March 2019 1,150 —
– hedged floating rate facility Hedged floating
*
31 March 2019 1,150 —
Macquarie Bank loan
– hedged floating rate facility Hedged floating
**
17 January 2017 529 529
– floating rate facility Floating
**
17 January 2017 183 183
– floating rate facility Floating
***
17 January 2017 325 —
K-Bonds I 
– fixed rate facility 6.00 31 July 2020 1,000 —
Capitalised finance charges on all loans (1,524) (450)
2,813 258,151
Non-current
Berlin-Hannoversche Hypothekenbank AG/Deutsche 
Pfandbriefbank AG
– capped floating rate facility Capped floating
*
31 March 2019 56,350 —
– hedged floating rate facility Hedged floating
*
31 March 2019 56,350 —
Macquarie Bank loan
– hedged floating rate facility Hedged floating
**
17 January 2017 19,471 20,652
– floating rate facility Floating
**
17 January 2017 6,728 7,136
– floating rate facility Floating
***
17 January 2017 31,815 —
K-Bonds I 
– fixed rate facility 4.00 31 July 2023 45,000 —
– fixed rate facility 6.00 31 July 2020 6,000 —
Convertible fixed rate facility 5.00 21 March 2018 5,000 5,000
Capitalised finance charges on all loans (4,643) (1,549)
222,071 31,239
Total 224,884 289,390
*
 This floating rate facility is charged interest at 300 bps plus EURIBOR. Half of this facility is capped at 4.50%; the other half is hedged at a rate of 4.065%;
**
  €20.0 million of this facility is charged interest at 600 bps plus 0.629% until 23 July 2016 by means of an interest rate swap. The remainder of the facility 
is charged interest at 6.0% plus EURIBOR.
***
 This facility is charged interest at 6.0% plus EURIBOR.
The borrowings are repayable as follows:
2014
€000
2013
€000
Or demand or within one year 4,337 258,601
In the second year 4,337 712
In the third to tenth years inclusive 222,378 32,076
Total 231,052 291,389
The Group has pledged 26 (2013: 33) properties to secure the interest-bearing debt facilities granted to the Group. The 26 properties 
had a combined valuation of €430,267,458 as at 31 March 2014 (2013: €429,015,328). Annual Report and Accounts 2014  /  Sirius Real Estate Limited 39
1
Strategic report
2
Governance
3
Financial statements
20. Interest-bearing loans and borrowings continued
ABN Amro Bank N.V.
This facility had €100,951,940 drawn down and was paid back in full on 17 December 2013.
Berlin-Hannoversche Hypothekenbank AG
To 31 March 2013, facilities of €208,688,000 had been granted by Berlin-Hannoversche Hypothekenbank AG. The facility was 
paid back in full by 31 March 2014.
Berlin-Hannoversche Hypothekenbank AG/Deutsche Pfandbriefbank AG
On 31 March 2014, the Company agreed to a facility agreement with Berlin-Hannoversche Hypothekenbank AG and Deutsche 
Pfandbriefbank AG for €115 million. The loan terminates on 31 March 2019. Amortisation is 2% p.a. for the first two years, 
2.5% for the third year and 3% thereafter, with the remainder due in the fifth year. Half of the facility is charged interest at 3% 
plus three months’ EURIBOR and is capped at 4.5% and the other half has been hedged at a rate of 4.065% until 31 March 2019. 
This facility is secured over nine property assets and is subject to various covenants with which the Group has complied.
Macquarie Bank
On 17 January 2013, the Company agreed to a facility agreement with Macquarie Bank Limited for €28.5 million. The loan terminates 
on 17 January 2017. Amortisation is 2.5% p.a. for the first three years, with the remainder due in the fourth year. The facility is 
subject to a cash sweep each quarter whereby Macquarie sweeps the Company’s rent collection accounts of the facilities’ borrowers, 
applying any excess towards the loan balance with immediate effect and without penalty. €20.0 million of the facility has been hedged 
at a rate of 6.629% until 23 July 2016 by way of an interest rate swap. The remainder of the facility is charged interest at 6% 
plus three months’ EURIBOR. This facility is secured over five property assets and is subject to various covenants with which the 
Group has complied.
On 13 December 2013, the Company agreed to a second facility agreement with Macquarie Bank Limited for €32.5 million. 
The loan terminates on 17 January 2017. Amortisation is 1% p.a. for the first three years, subject to meeting an agreed business 
plan, with the remainder due in the fourth year. This is tested quarterly in arrears and if the business plan numbers are not achieved, 
Macquarie has the option to sweep the facilities’ borrowers’ rent collection accounts applying any excess towards the loan balance 
with immediate effect and without penalty. The facility is charged interest at 6% plus three months’ EURIBOR. This facility is secured 
over nine property assets and is subject to various covenants with which the Group has complied.
K-Bonds
On 1 August 2013, the Company agreed to a facility agreement with K-Bonds for €52 million. The loan consists of a senior tranche 
of €45 million and a junior tranche of €7 million. The senior tranche has a fixed interest rate of 4% p.a. and is due in one sum on 
31 July 2023. The junior tranche has a fixed interest rate of 6% and terminates on 31 July 2020. The junior tranche is amortised 
at €1 million p.a. over a seven year period. This facility is secured over three properties and is subject to various covenants with 
which the Group has complied.
Convertible shareholder loan
On 22 March 2013, the Company issued €5.0 million convertible loan notes due in 2018 (the “Loan Notes”). The entire issue 
of €5.0 million has been taken up by the Karoo Investment Fund S.C.A. SICAVSIF and Karoo Investment Fund II S.C.A. SICAVSIF, 
24.57% shareholders in Sirius. The Loan Notes were issued at par and carry a coupon rate of 5% per annum. The Loan Notes are 
convertible into ordinary shares of Sirius at the conversion price of €0.24 from 21 March 2014. The majority of the proceeds from 
the issue of the Loan Notes were used to reduce debt levels. 
A summary of the Group’s debt covenants are set out below:
Outstanding at
31 March 2014
 €000
Properties at
31 March 2014
€000
Loan-to-value
ratio at
31 March 2014
Loan-to-value
covenant at
31 March 2014
Interest cover
ratio at
31 March 2014
Debt service
cover ratio at
31 March 2014
Cover ratio
covenant at
31 March 2014
Berlin-Hannoversche 
Hypothekenbank AG/ 
Deutsche Pfandbriefbank AG 115,000 220,886 52.1% 60.0% 1.94 n/a 1.40
Macquarie Bank – Facility 1 26,911 53,469 50.3% 66.6% 2.07 1.75
1.17 1.05
Macquarie Bank – Facility 2 32,140 81,182 39.6% 65.0% 2.20 1.90
1.64 1.05
K-Bonds 52,000 74,730 69.6% n/a 3.30 n/a 2.50
Unencumbered properties — 13,453 n/a
Total 226,051 443,720 50.9% Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 40
21. Financial risk management objectives and policies
The Group’s principal financial liabilities comprise bank loans, derivative financial instruments and trade payables. The main purpose 
of these financial instruments is to raise finance for the Group’s operations. The Group has various financial assets such as trade 
receivables and cash, which arise directly from its operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk and interest rate risk. The risk management 
policies employed by the Group to manage these risks are discussed below.
Credit risk
Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows 
from financial assets on hand at the reporting date. In the event of a default by an occupational tenant, the Group will suffer 
a rental shortfall and incur additional costs, including expenses incurred to try and recover the defaulted amounts and legal 
expenses in maintaining, insuring and marketing the property until it is relet. During the year the Group monitored the tenants 
in order to anticipate and minimise the impact of defaults by occupational tenants, as well as to ensure that the Group has 
a diversified tenant base. 
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the 
reporting date was:
2014
€000
2013
€000
Trade receivables 4,545 3,790
Other debtors 6,833 5,652
Prepayments 1,570 494
Derivative financial instruments 678 —
Cash and cash equivalents 13,747 16,718
27,373 26,654
The ageing of trade receivables at the statement of financial position date was:
Group
Gross
2014
€000
Impairment
2014
€000
Gross
2013
€000
Impairment
2013
€000
Past due 0–30 days 4,466 (1,057) 1,673 (289)
Past due 31–120 days 1,268 (658) 3,644 (1,797)
More than 120 days 2,571 (2,045) 2,505 (1,946)
8,305 (3,760) 7,822 (4,032)
The movement in the allowance for impairment in respect of trade receivables during the year was as follows:
2014
€000
2013
€000
Balance at 31 March (4,032) (3,175)
Impairment loss released/(recognised) 272 (857)
Balance at 31 March (3,760) (4,032)
The allowance account for trade receivables is used to record impairment losses unless the Group believes that no recovery of the 
amount owing is possible; at that point the amounts considered irrecoverable are written off against the trade receivables directly.
Most trade receivables are generally due one month in advance. The exception is service charge balancing billing which is due 
ten days after it has been invoiced. Included in the Group’s trade receivables are debtors with carrying amounts of €4,545,168 
(2013: €3,789,940) which are past due at the reporting date for which the Group has not provided as there has not been 
a significant change in credit quality and the amounts are still considered recoverable.
Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially 
enhances profitability but can also increase the risk of losses. The Group has procedures with the objective of minimising such losses, 
such as maintaining sufficient cash and other highly liquid current assets and having available an adequate amount of committed 
credit facilities. The Group prepares cash flow forecasts and continually monitors its ongoing commitments compared to available 
cash. Cash and cash equivalents are placed with financial institutions on a short-term basis which allows immediate access. This reflects 
the Group’s desire to maintain a high level of liquidity in order to meet any unexpected liabilities that may arise due to the current 
financial position. Annual Report and Accounts 2014  /  Sirius Real Estate Limited 41
1
Strategic report
2
Governance
3
Financial statements
21. Financial risk management objectives and policies continued
Liquidity risk continued
The table below summarises the maturity profile of the Group’s financial liabilities as at 31 March 2014 based on contractual 
undiscounted payments:
Year ended 31 March 2014
Bank and
shareholder
loans
€000
Derivative
 financial
instruments
€000
Trade and other
payables
€000
Total
€000
Undiscounted amounts payable in:
Six months or less (8,094) (260) (20,980) (29,334)
Six months to one year (7,011) (256) — (7,267)
One to two years (14,905) (508) — (15,413)
Two to five years (196,958) (1,267) — (198,225)
Five to ten years (54,900) — — (54,900)
(281,868) (2,291) (20,980) (305,139)
Interest 50,816 2,291 — 53,107
(231,052) — (20,980) (252,032)
Year ended 31 March 2013
Bank
loans
€000
Derivative
 financial
instruments
€000
Trade and other
payables
€000
Total
€000
Undiscounted amounts payable in:
Six months or less (58,074) (42) (27,824) (85,940)
Six months to one year (209,341) (41) — (209,382)
One to two years (3,046) (80) — (3,126)
Two to five years (36,473) (101) — (36,574)
(306,934) (264) (27,824) (335,022)
Interest 15,545 264 — 15,809
(291,389) — (27,824) (319,213)
Currency risk
There is no significant foreign currency risk as most of the assets and liabilities of the Group are maintained in euros. Small amounts 
of UK sterling are held to ensure payments made in UK sterling can be achieved at an effective rate.
Interest rate risk
The Group’s exposure to interest rate risk relates primarily to the Group’s long-term floating rate debt obligations. The Group’s 
policy is to mitigate interest rate risk by ensuring that a minimum of 83% of its total borrowing is at fixed interest rates by taking 
out fixed rate loans or derivative financial instruments to hedge interest rate exposure.
A change in interest will only have an impact on the floating loans capped due to the fact that the other loans have a general 
fixed interest or they are effectively fixed by a swap. An increase in 100 basis points in interest yield would result in a decreased 
post tax profit in the consolidated statement of comprehensive income of €1.0 million (excluding the movement on derivative 
financial instruments) and a decrease in 100 basis points in interest yield would result in an increased post tax profit in the 
consolidated statement of comprehensive income of €1.0 million (excluding the movement on derivative financial instruments).
Capital management
The Group seeks to enhance shareholder value both by investing in the business so as to improve the return on investment 
and by managing the capital structure.
The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or 
adjust the capital structure, the Group may adjust the dividend payment to shareholders, issue shares or undertake transactions 
such as occurred with the internalisation of the Asset Management Agreement.
The Company holds 6,518,731 of its own shares which continue to be held as Treasury Shares. During the year 3,703,093 shares 
were issued from treasury and no share buybacks were made. 
The Group monitors capital using a gross debt to property assets ratio, which was 50.9% as at 31 March 2014 (2013: 65.4%).
The Group is not subject to externally imposed capital requirements other than those related to the covenants of the bank loan facilities. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 42
22. Financial instruments
Fair values
Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial instruments that are 
carried in the financial statements:
2014 2013
Carrying
amount
€000
Fair
value
€000
Carrying
amount
€000
Fair
value
€000
Financial assets
Cash 13,747 13,747 16,718 16,718
Trade receivables 4,545 4,545 3,790 3,790
Derivative financial instruments 678 678 — —
Financial liabilities
Trade payables 5,318 5,318 6,658 6,658
Derivative financial instruments 174 174 197 197
Interest-bearing loans and borrowings:
Floating rate borrowings 39,051 39,051 257,889 257,889
Floating rate borrowings – hedged 20,000 20,000 28,500 28,500
Floating rate borrowings – capped 115,000 115,000 — —
Fixed rate borrowings 57,000 56,312 5,000 5,000
Fair value hierarchy
The table below analyses financial instruments measured at fair value into a fair value hierarchy based on the valuation technique 
used to determine fair value:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly 
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Level 1
€000
Level 2
€000
Level 3
€000
Total
€000
2014
Derivative financial instruments — 504 — 504
2013
Derivative financial instruments — (197) — (197)
Interest rate risk
The following table sets out the carrying amount, by maturity, of the Group’s financial instruments that are exposed to interest 
rate risk:
2014
Within 1 year
€000
1–2 years
€000
2–3 years
€000
3–4 years
€000
4–5 years
€000
Total
€000
Berlin-Hannoversche 
Hypothekenbank AG/ 
Deutsche Pfandbriefbank AG (1,150) (1,150) (1,437) (1,725) (52,038) (57,500)
Macquarie Bank loans (1,037) (1,037) (36,977) — — (39,051)
Cash assets 13,747 — — — — 13,747
2013
Within 1 year
€000
1–2 years
€000
2–3 years
€000
3–4 years
€000
4–5 years
€000
Total
€000
ABN Amro loan (49,201) — — — — (49,201)
Berlin-Hannoversche 
Hypothekenbank AG loan (208,688) — — — — (208,688)
Macquarie Bank loan (712) (712) (712) (26,364) — (28,500)
Cash assets 16,718 — — — — 16,718 Annual Report and Accounts 2014  /  Sirius Real Estate Limited 43
1
Strategic report
2
Governance
3
Financial statements
22. Financial instruments continued
Interest rate risk continued
The other financial instruments of the Group that are not included in the above tables are non-interest bearing and are therefore 
not subject to interest rate risk.
23. Issued share capital
Authorised
Number
of shares
Share
capital
€
Ordinary shares of no par value Unlimited —
As at 31 March 2014 Unlimited —
Issued and fully paid
Number
of shares
Share
capital
€
Ordinary shares of no par value
Issued ordinary shares 327,800,000 —
Shares bought back and held in treasury (25,576,824) —
Issued Treasury Shares 15,355,000 —
As at 31 March 2013 317,578,176 —
Issued ordinary shares 197,619,038 —
Issued Treasury Shares 3,703,093 —
As at 31 March 2014 518,900,307 —
Holders of the ordinary shares are entitled to receive dividends and other distributions and to attend and vote at any general meeting.
On 6 August 2013, the Company conducted an equity raising through the issue of 30,952,371 ordinary shares of no par value, 
representing 9.4% of the Company’s issued share capital at that time. These shares were issued at a price of 21c per share, 
representing a discount of 6.67% to the prevailing share price, to new and existing shareholders and rank pari passu in all respects 
with the then-existing issued shares of the Company including the right to receive all dividends and other distributions declared 
after Admission.
On 4 December 2013, the Company conducted an equity raising through the issue of 166,666,667 ordinary shares of no par value, 
representing 47.5% the Company’s issued share capital (excluding treasury shares) at that time. These shares were issued at a price 
of 24c per share, representing a discount of 4.00% to the prevailing share price, to new and existing shareholders and rank pari 
passu in all respects with existing issued shares of the Company including the right to receive all dividends and other distributions 
declared after Admission. 
The Company holds 6,518,731 of its own shares which are held as treasury. During the year 3,703,093 shares were issued 
from treasury.
No share buybacks were made in the year.
24. Other reserves
Other distributable reserve
The other distributable reserve is a distributable reserve that was created for the payment of dividends and for the buyback 
of shares and is €349,978,105 in total at 31 March 2014 (2013: €303,636,655).
25. Dividends
The Group intends to recommence the payment of a regular dividend, starting with a final dividend of 0.30c per share for the period. 
The final dividend will be paid on 22 August 2014 to shareholders on the register as at 25 July 2014. The ex-dividend date will be 
23 July 2014. Whilst only a modest payment at this stage, the 0.30c dividend represents 65% of the recurring profits
**
 after tax 
for the March 2014 quarter, following the capital raising completed in December. The Board has set a policy to pay a dividend equal 
to 65% of the recurring profits
**
 after tax in respect of each financial year of the Group. It is intended that dividends will be paid 
on a semi-annual basis and offered to shareholders in cash or scrip form. 
**
 Recurring profits are profits after tax and before property revaluation, change in fair value of derivative financial instruments and non-recurring costs. Notes to the financial statements continued
For the year ended 31 March 2014
Sirius Real Estate Limited  /  Annual Report And Accounts 2014 44
26. Related parties
Property management fee – Bremen Holzhafen
PCO Real Estate Asset Management Limited (formerly Principle Capital Sirius Real Estate Asset Management Limited) has an 
agreement to assist in the management and advise on the sale of the property at Bremen Holzhafen. An annual fee of €120,000 
was payable quarterly in advance but this expired in January 2014. In the year fees of €93,385 (2013: €120,000) were paid. 
On 22 March 2013, the Company issued €5.0 million convertible loan notes due in 2018 (the “Loan Notes”). The entire issue 
of €5.0 million was taken up by the Karoo Investment Fund S.C.A. SICAVSIF and Karoo Investment Fund II S.C.A. SICAVSIF , 24.57% 
shareholders in Sirius. The Loan Notes were issued at par and carry a coupon rate of 5% per annum. The Loan Notes are convertible 
into ordinary shares of Sirius at the conversion price of €0.24 from 21 March 2014. The majority of the proceeds from the issue 
of the Loan Notes were used to reduce debt levels. Interest on the Loan Notes was €257,277 in the year ended 31 March 2014 
(2013: €nil). The Directors consider that the terms of this transaction are fair and reasonable insofar as its shareholders are concerned.
On 1 October 2013, Executive Director Andrew Coombs acquired 762,489 ordinary shares in the Company and Executive Director 
Alistair Marks acquired 704,700 ordinary shares in the Company, both pursuant to performance bonus agreements for the March 2014 
financial year set out in a letter from the Company to the executives dated 18 September 2013. The executives are liable to income 
tax and employee’ s national insurance contributions (“NICs”) in respect of such acquisitions. T o enable the executives to fund such income 
tax and NICs, the Company granted loans to Andrew Coombs in the amount of £77,747.87 (€94,068.81) and to Alistair Marks in 
the amount of £71,839.23 (€86,919.82). These amounts are still outstanding in full at 31 March 2014. All interest accrued has been 
paid to 31 March 2014.
Key management personnel compensation
Fees paid to persons or entities considered to be key management personnel of the Group during the year include:
2014
€000
2013
€000
Directors’ fees 142 201
Salary and employee benefits 1,437 1,496
Share-based payments 380 10
1,959 1,707
Asset management fee — —
Property management fee 93 120
Development fee — —
Total 2,052 1,827
Information on Directors’ emoluments is given in the remuneration report on page 15.
A number of key management personnel, or their related parties, hold positions in subsidiaries of the Group that result in them 
having control or significant influence over the financial or operating policies of the Group.
27. Commitments
As at 31 March 2014 the Group had contracted capital expenditure on existing properties of €4,066,797 (2013: €838,866) 
and commitments of €355,776 (2013: €711,553) from office rental contracts. These were committed but not yet provided for 
in the financial statements.
28. Operating lease arrangements
Group as lessor
All properties leased by the Group are under operating leases and the future minimum lease payments receivable under  
non-cancellable leases are as follows:
2014
€000
2013
€000
Less than one year 37,728 36,675
Between one and five years 61,288 69,850
More than five years 16,140 26,774
115,156 133,299
The Group leases out its investment properties under operating leases. Most operating leases are for terms of one to ten years. Registered office
PO Box 119 
Martello Court 
Admiral Park 
St. Peter Port 
Guernsey GY1 3HB 
Channel Islands
Registered number
Incorporated in Guernsey under The Companies (Guernsey) 
Laws, 2008, as amended, under number 46442
Company secretary and administrator
Intertrust Fund Services (Guernsey) Limited
PO Box 119 
Martello Court 
Admiral Park 
St. Peter Port 
Guernsey GY1 3HB 
Channel Islands
UK solicitors
Norton Rose LLP
3 More London Riverside 
London SE1 2AQ
Financial PR
Novella Communications
19 Buckingham Gate 
London SW1E 6LB
Nominated adviser and broker
Peel Hunt LLP
120 London Wall 
London EC2Y 5ET
finnCap 
60 New Broad Street 
London EC2M 1JJ
Property valuers
Cushman & Wakefield LLP
Rathenauplatz 1 
60313 Frankfurt am Main 
Germany
Auditors
KPMG Channel Islands Limited
20 New Street 
St. Peter Port 
Guernsey GY1 4AN 
Channel Islands
Guernsey solicitors
Carey Olsen
PO Box 98 
7 New Street 
St. Peter Port 
Guernsey GY1 4BZ 
Channel Islands
Corporate directory Sirius Real Estate Limited Annual Report and Accounts 2014
Sirius Real Estate Limited
PO Box 119 
Martello Court 
Admiral Park 
St. Peter Port 
Guernsey GY1 3HB 
Channel Islands
www.siriusrealestate.com