The improvement in demand could not come at a better time.Sirius was hit late last year by two large tenant move-outs which,it warned recently, could cut profits below expectations in thefinancial year just ended in March. But founder and CEO KevinOppenheim is optimistic that the surge in demand across theportfolio – 38 separate German business parks of 11.8 millionsquare feet of mixed-used flexible-workspace real estate - meansthe worst is over.

Sirius has invested $66.5 million of capital expenditure tomodernize and upgrade, and the strategy is paying off, Oppenheimsays. "What we've essentially achieved is Phase 1, which includedbuilding up the existing portfolio and the management team, andcreating the regional platform in Germany, really spending thecapital to procure the transformation from tired old buildings intomodern new vibrant multi-let branded business parks. We've createda lot of product, put our brand in the market, and Phase Two, whichwe've now entered, is what I call a drive towards occupancy andefficiency."

He says Phase Two is taking the portfolio from the current levelof occupancy which is circa 71%, up to 80%-plus. Sirius has setthis benchmark to allow it to move forward in a third phase towardrealizing value for shareholders, and maximizing profits. "We'vebeen very lucky on timing because what we're seeing now is a levelof inquiries and demand for our product way above anything we'vehad previously," Oppenheim says.