Phoenix Spree Deutschland Limited Portfolio Update (3607U)
29 Luglio 2015 - 8:03AM
UK Regulatory
TIDMPSDL
RNS Number : 3607U
Phoenix Spree Deutschland Limited
29 July 2015
29 July 2015
Phoenix Spree Deutschland Limited
Portfolio Update
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed
investment company specialising in German residential real estate
(together with its subsidiaries, the "Fund"), is pleased to
announce that it has exchanged contracts (the "Acquisition") on an
apartment complex located in Friedrichshain, Berlin (the
"Property").
Highlights:
-- Total consideration of EUR16 million (GBP11.4 million), excluding acquisition costs;
-- Price per square metre of EUR2,580, which represents an
estimated prospective gross yield of 4.8%;
-- The Acquisition will increase the Fund's rental income by c. 6%;
-- Attractively located in one of Berlin's most 'in-demand'
locations: Boxhagener "Kiez", Friedrichshain; and
-- Expected to complete in Autumn 2015, following which the
Fund's Berlin properties will represent c. 66% of gross assets
The Property was constructed in 1996, has c. 6,200 square metres
of net leasable area, and is currently fully occupied. In addition
to 63 residential units, the Property has four commercial units,
the largest of which is tenanted by denn's Biomarkt, a national
supermarket chain. The Property is located in Boxhagener "Kiez" in
Friedrichshain, one of the most in-demand Berlin locations, and is
well served by public transport. It also attractively located
adjacent to Boxhagener Platz, a popular square consisting of many
bars and restaurants.
As at 31 June 2015, the Property had a contracted rent roll of
c. EUR760,000 per annum and the Acquisition will increase the
Fund's rental income by c. 6%. The Acquisition is expected to
complete in autumn 2015 after which the Fund's Berlin properties
are expected to represent c. 66% of the Fund's gross assets.
The Acquisition will initially be financed by existing cash
resources, however it is expected that the Fund will refinance the
acquisition and it has received indicative offers of finance from
German lending banks.
PMM Partners, the Property Advisor, believes that in the medium
term individual apartments could be sold as individual units to
owner occupiers at a premium to the acquisition value.
The Fund has also completed the disposal of commercial property
Hünxerstrasse 155, Dinslaken. The Property was sold for EUR1.44
million and the majority of proceeds will be used to repay loans
outstanding on the property. The disposal value was in line with
book value.
Robert Hingley, Chairman of Phoenix Spree Deutschland,
commented:
"The Acquisition and recent disposal of Hünxerstrasse are both
good examples of the Fund executing on its strategy of increasing
its exposure to the residential market in Berlin and selected
secondary cities. It demonstrates that, in a competitive market for
assets, the Fund can acquire attractive properties which fit its
strict return profile requirements. The acquisition of this large
prime Berlin asset complements the Fund's existing rental portfolio
as well as offering the potential to achieve returns through the
resale of individual apartments in the medium term."
Note: Sterling denominated purchase price value is based on an
exchange rate of EUR1.4 to GBP1.
For further information please contact:
PMM Partners (Property Advisor)
Mike Hilton +44 (0)20 8973 1020
Matthew Northover
Paul Ruddle
Stuart Young
Liberum
Richard Crawley +44 (0)20 3100 2222
Christopher Britton
Bell Pottinger
Nick Lambert +44 (0)20 3772 2500
Victoria Geoghegan
Joanna Boon
Notes to Editors:
About Phoenix Spree Deutschland
Phoenix Spree Deutschland is a UK listed investment company
offering shareholders exposure to the German real estate market,
particularly residential property in Berlin and other secondary
German cities. Since Phoenix Spree Deutschland was incorporated in
Jersey in 2007, the Company has assembled an attractive portfolio
of German real estate assets which currently consists of 113
properties containing 2,321 rental units (plus a further 497
parking and miscellaneous units) across Berlin and secondary cities
in Germany, representing a lettable area of 169,500 square metres.
The primary assets are multi-apartment residential buildings built
pre-1914 or post-1990 and 82% of the Portfolio by lettable area
relates to residential property, with the balance being commercial
property. Berlin is the Portfolio's largest geographical market
representing 63% of its current total value.
Phoenix Spree Deutschland has a growth strategy to manage and
invest in the Portfolio in order to drive capital growth and
increase Shareholder value. The Property Advisor has significant
experience in generating rental and capital growth through
innovative asset management and value added investment.
Underpinning this strategy is the potential value uplift the
Property Advisor believes can be achieved within the Portfolio
through a natural reversion of current rents to higher market
rents, combined with a number of strategies to maximise the rental
income and value of properties.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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