Annual Report and Notice of AGM and EGM

RNS Number : 7418G

Phoenix Spree Deutschland Limited

31 May 2017

 

31 May 2017

Phoenix Spree Deutschland Ltd

(the "Company")

Annual Report and Notice of AGM and EGM

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, announces that the Annual Report and Accounts for the year ended 31 December 2016, the Notice of the Annual General Meeting ("AGM") and the Notice of an Extraordinary General Meeting ("EGM") have been posted to shareholders.

The purpose of the EGM is to seek approval from shareholders to make an amendment to the Company's investment policy (the "Proposal"). As one of the amendments is considered to be material, the approval of shareholders is required in accordance with the Listing Rules. The proposed amendment of the investment policy has been approved by the FCA in accordance with the Listing Rules.

Background to and reasons for the Proposal:

Since the Company's introduction to listing, the Company has been required by its investment policy to ensure that its property acquisitions meet the condition that they deliver a fully let yield of at least 4 per cent. in Berlin and 5 per cent. in other German cities. In complying with these requirements the Company has found itself unable to invest in potentially attractive properties that cannot meet this short term income yield requirement but would be expected to generate attractive returns over the medium to longer term.  In practice, the Company and its Property Advisor have found they use medium term IRR as the appropriate, risk weighted metric to evaluate the relative attractiveness of a potential acquisition because focussing investment criteria on short term income returns misses the medium term value creation potential from value-add asset management (such as modernisation and renovation), limited development of properties and condominium sales. The Company therefore proposes to change its relevant metric from a fully let yield to a target medium term IRR as per the following proposed amendment: 

The Company will seek to invest in properties or portfolios of properties which are expected to deliver a fully-let yield of at least 4 per cent. in Berlin and 5 per cent. in other secondary German cities deliver a medium term IRR of not less than 8 per cent.

Extraordinary General Meeting

The Proposal is conditional on the approval by shareholders at the Extraordinary General Meeting, which has been convened for 10.15 a.m. on 26 June 2017 at 13-14 Esplanade, St Helier, Jersey, JE1 1EE, Channel Islands.

Recommendation

The Board considers that the Proposal is in the best interest of the Company and its shareholders as a whole. Accordingly the Board unanimously recommends that shareholders vote in favour of the resolution to be proposed at the Extraordinary General Meeting to approve the Proposal (the "Resolution"). The Directors intend to vote in favour of the Resolution in respect of their own beneficial holdings of shares in the Company.

Annual General Meeting

The Company also announces that its Annual General Meeting will be held at 13-14 Esplanade, St Helier, Jersey, JE1 1EE, Channel Islands at 10.00 a.m. on 26 June 2017. The Notice of AGM has been dispatched to all shareholders.

An electronic copy of the Annual Report and Accounts, the Notice of AGM and Notice of EGM are available on the Company's website and will shortly be submitted to the National Storage Mechanism which can be accessed at http://www.morningstar.co.uk/uk/NSM.

For further information please contact:

Phoenix Spree Deutschland Stuart Young	[phone]
Liberum Capital Limited (Corporate Broker) Richard Crawley Christopher Britton	[phone]
Bell Pottinger (Financial PR) Nick Lambert Elizabeth Snow	[phone]

 

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