Sirius Real Estate fancied to meet increasing demands for commercial
SIrius is tipped as a ‘buy’ with a 142p price target.
Sirius Real Estate Limited (LSE:SRE, JSE:SRE, OTC:SRRLF) is equipped to meet increasing demands of business space, according to Berenberg, which has repeated a ‘buy’ recommendation and lifted its target price.
The European bank’s new target was raised to 142p.
Berenberg, in a note, described the acquisition of Bizspace, a UK based light industrial property company, and a business park in the Greater Stuttgart region of Germany as “good fits” for the company’s portfolio that’s now valued at nearly €2bn.
Whilst it now operates in two countries, Berenberg believe this should be no problem to the property company, which has shown an ability to integrate acquisitions rapidly thanks to its operational platform.
Underlying market trends – namely the increasing need, due to COVID, for companies to stock up on inventory as instead of prior ‘just-in time’ delivery – will indirectly lead to greater demand for commercial space, Berenberg highlighted.
Looking ahead, Berenberg said it expects an announcement by the company on its UK strategy, which could lead to further opportunities for growth.
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