Investment Property Valuation

RNS Number : 8096L

Phoenix Spree Deutschland Limited

14 January 2016

 

14^th January 2016

Phoenix Spree Deutschland

Investment Property Valuation

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, announces the updated valuation for the portfolio of investment properties held by the Company and its subsidiaries (the "Portfolio").

The Portfolio was valued by Jones Lang LaSalle GmbH, the Company's external valuers, as at 31^st December 2015, at €282.762 million (31^st December 2014: €245.318 million) which represents an increase of 15.3 per cent over the twelve-month period. This increase in valuation reflects yield movement and adjustments due to improved property condition; rental income increases; decreasing vacancy; market rent adjustments; and the net impact of acquisitions and disposals (€11.97 million).

On a like-for-like basis, the Portfolio valuation increased by 10.6 per cent in the twelve months ended 31^st December 2015. This compares to like-for-like growth of 5.3 per cent for the six months ended 30^th June 2015.

All geographical markets registered valuation gains during the period, with Nürnberg & Fürth seeing the largest like-for-like increase at 14.7 per cent, followed by Berlin (12.2 per cent), Central & North (6.0 per cent) and Baden-Württemberg (1.0 per cent). The like-for-like increases highlight the strength of the German residential market in Berlin and secondary cities. In particular, prices of traditional "Altbau" properties within the Berlin S-Bahn ring and in Nürnberg & Fürth continue to attract investor interest and benefit from strong market fundamentals.

The Portfolio valuation represents a value per square metre of €1,635 (31^st December 2014 €1,447) and a gross initial rental yield of 5.7 per cent (6.1 per cent).

The Company expects to report its results for the twelve-month period ended 31^st December 2015 during April 2016.

For further information please contact:

Phoenix Spree Deutschland                      

Stuart Young (Investor Relations)                                 [phone]

Liberum Capital Limited (Corporate Broker)                                                                      

Richard Crawley                                                                   [phone]

Christopher Britton

Bell Pottinger (Financial PR)                                                      

Nick Lambert                                                                         [phone]

Notes to Editors

About Phoenix Spree Deutschland:

Phoenix Spree Deutschland Limited 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 115 properties containing 2,369 rental units (plus parking and miscellaneous units) across Berlin and secondary cities in Germany, representing a lettable area of 172,895 square metres. The primary assets are multi-apartment residential buildings mostly built pre-1914 or post-1990 and 83 per cent 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 66 per cent 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 managing the Portfolio, PMM Partners, 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 such as renovation of apartments and conversion of commercial space to residential.

 

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