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Principle buys stake in Dawnay Day Sirius asset management firm

The asset management division of German commercial real estate investor Dawnay Day Sirius has been restructured. Geneva-based activist investor Principle Capital Holdings is buying troubled Dawnay Day's 48 percent stake.

A subsidiary of Swiss-based activist investor, Principle Capital Holdings, has acquired a 48 percent stake in the asset management company of Dawnay Day Sirius as the unravelling of the troubled Dawnay Day group continues.

The subsidary, Principle Capital Partners, is buying the stake in Dawnay Day Sirius Real Estate Asset Management which was originally set up as a joint venture between Dawnay Day, Kevin and Frank Oppenheim and the senior management of Dawnay Day Sirius Real Estate Asset Management.

The sale by Dawnay Day comes days after one of its owners Peter Klimt relinquished his position on the board of Dawnay Day Sirius Real Estate Asset Management. Klimt was forced to step down as the Dawnay Day group continued to unravel amid financial difficulties related to the credit crunch.

As a result of the latest restructuring of Dawnay Day’s assets, Principal Capital Partners will own 48 percent of Dawnay Day Sirius Real Estate Asset Management. Kevin and Frank Oppenheim will retain 48 percent and senior management of Dawnay Day Sirius Real Estate Asset Management four percent. The asset management company will also change name to Principle Capital Sirius Real Estate Asset Management, while Principal Capital Partners chief executive Brian Myerson will become a non executive director subject to regulatory approval.

As well as the 48 percent stake in the management firm, Principle Capital Parnters said it was also acquiring 48 percent of Marba Holland, which receives performance fees linked to the property portfolio of Dawnay Day Sirius, and a 50 percent stake in Falsa Investments, which owns 5.1 percent of certain properties acquired by Sirius when it floated on London's Alternative Investment Market.