Phoenix Spree Deutschland Limited UPDATE ON NON-CORE DISPOSALS AND ACQUISITIONS (9892Z)
21 Dicembre 2017 - 8:00AM
UK Regulatory
TIDMPSDL
RNS Number : 9892Z
Phoenix Spree Deutschland Limited
21 December 2017
Phoenix Spree Deutschland Ltd
(The "Company" or "PSDL")
UPDATE ON NON-CORE DISPOSALS AND ACQUISITIONS
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed
investment company specialising in German residential real estate,
is pleased to announce that it has exchanged contracts to sell a
portfolio of 34 properties located in Central and Northern Germany
(the "Disposal") for an aggregate cash consideration of EUR73.0m.
On completion of the Disposal, and including further acquisitions
and disposals notarised since 30 June 2017, Berlin is expected to
represent over 99% of the Company's Portfolio by value.
Highlights:
-- The Disposal value represents a 26% premium to the 30 June 2017 Jones Lang LaSalle valuation
-- Proceeds will be used to reduce debt, fund further
acquisitions in Berlin and invest in the existing portfolio
-- Further non-core disposals with an aggregate value of EUR6.7m
have been notarised since 30 June 2017, at above book value
-- Aggregate disposal proceeds are expected to have a positive
impact on EPRA NAV after transaction costs and taxes
-- Acquisition of 10 Berlin properties with an aggregate value
of EUR36.5m have been notarised since 30 June 2017
-- Following completion of all transactions notarised to date,
PSDL will effectively become a pure play Berlin fund. The Board is
convinced that the Berlin market remains highly attractive and
offers significant potential to develop the Company's business
further
Disposals
The non-core portfolio being sold by the Company for a total
consideration of EUR73.0m comprises 34 properties located in
Bremen, Hannover, Hildesheim, Verden, Delmenhorst, Kiel, Oldenburg,
Lüneburg and Lübeck. These buildings were acquired in 2006/2007 for
an aggregate purchase price of EUR 38.7m and the sale price
represents a 26% premium to the Jones Lang LaSalle valuation as at
30 June 2017.
Additionally, since 30 June 2017, a further four properties
located in Central & North Germany have been notarised for sale
for a combined consideration of EUR6.7m, 11% above the 30(th) June
2017 book value.
The combined proceeds from disposals of EUR79.7m are expected to
have a positive impact on EPRA NAV, after transaction costs and
taxes, and will be used to pay down debt and invest in the scale
and quality of the portfolio.
Acquisitions
The Company has also notarised the acquisition of 10 Berlin
properties for an aggregate purchase price of EUR36.5m. In
aggregate, they represent 235 residential and 7 commercial units,
with a purchase price per square metre of EUR2,358. The final two
acquisitions are expected to complete in 1Q 2018, and it is
anticipated that the 10 properties together will increase the
Fund's rental income by around 6.5%.
Berlin focussed fund
Following completion of all acquisitions and disposals notarised
to date, Berlin is expected to represent over 99% of the Company's
portfolio value on a pro-forma basis, effectively becoming a pure
play on Berlin residential, its positive demographics and
attractive growth prospects.
Phoenix Spree Deutschland was advised on the transactions by PMM
Partners (UK) Ltd, property advisor to the Company.
Jörg Schwagenscheidt, Chief Executive of PMM Partners Germany
GmbH, commented:
"The transactions announced today are a step forward in our
strategy of focusing on and growing the Company's portfolio in
Berlin. The disposals will strengthen the balance sheet and enable
further accretive acquisitions which fulfil the Company's strict
investment criteria and enhance the long term value of the
Company."
The Company expects to announce its year-end 2017 valuation for
the Portfolio of investment properties held by the Company in the
final week of January 2018.
For further information please contact:
Phoenix Spree Deutschland
Stuart Young +44 (0)20 3937 8760
Liberum Capital Limited (Corporate
Broker)
Richard Crawley
Christopher Britton +44 (0)20 3100 2222
Tulchan Communications (Financial
PR)
Tom Murray
Elizabeth Snow +44 (0)20 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
END
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