Disposal of non-core portfolio for EUR35.25m

RNS Number : 8644B

Phoenix Spree Deutschland Limited

07 April 2017

 

7 April 2017

Phoenix Spree Deutschland Ltd

Disposal of non-core portfolio for €35.25m

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate (the "Company"), is pleased to announce that it has exchanged contracts to sell a portfolio of 17 non-core properties in Nuremberg and Fürth ("the Disposal") for an aggregate cash consideration of €35.25m.

Highlights:

·     Properties were acquired in 2007 and 2008 for an aggregate purchase price of €13.9m.

·     Sale proceeds represent an 11% premium to the 31 December 2016 Jones Lang LaSalle valuation.

·     Following completion, and including any acquisitions and disposals which were notarized in 2016 but had yet to complete by the financial year end, properties located in Berlin will represent approximately 82% of the Company's portfolio value.

·     The Disposal represents an exit from Nuremberg & Fürth. Proceeds will be used to reduce debt, fund further acquisitions in Berlin and invest in the existing portfolio.

·     The Disposal is expected to have a positive impact on EPRA NAV after transaction costs and taxes.

Phoenix Spree Deutschland was advised on the Disposal by PMM Partners (UK) Ltd, property advisor to the Company.

Jörg Schwagenscheidt, Chief Executive of PMM Partners Germany GmbH, commented:

"This is another important milestone for the Company. The Disposal represents a profitable exit from the region, releasing capital from non-core assets which can be redeployed to increase our exposure to the attractive Berlin residential market."

"We will maintain our highly disciplined approach to acquiring properties in Berlin, targeting those which fit our strict return criteria and where we can continue to add value."

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]

Notes to Editors

Phoenix Spree Deutschland is an investment company founded in 2007 and listed on the London Stock Exchange. It offers shareholders exposure to the German residential market, particularly Berlin. Since Phoenix Spree Deutschland was incorporated in Jersey in 2007, the Company has assembled an attractive portfolio of German real estate assets. As at 31 December 2016 the portfolio consisted of 130 properties containing 2,785 residential units and 237 commercial units across Berlin and secondary cities in Germany, representing a total lettable area of 215,631 square metres. The primary assets are multi-apartment residential buildings mostly built pre-1914 or post-1990 and 84 per cent of the Portfolio by lettable area relates to residential property, with the balance being commercial property. PMM Partners (UK) Ltd acts as the Property Advisor. It has an experienced team of property professionals with long-standing experience of the German residential property market.

 

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