Phoenix Spree Deutschland Limited Portfolio Update (5080M)

TIDMPSDL

RNS Number : 5080M

Phoenix Spree Deutschland Limited

14 October 2016

14(th) October 2016

Phoenix Spree Deutschland Ltd

Portfolio Update

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate (the "Fund"), is pleased to announce that it has exchanged contracts to purchase a portfolio of four properties in Berlin ("the Acquisition"). The Fund has also completed the first apartment sale in its latest condominium programme in Boxhagenerstrasse, Berlin.

Highlights:

 
 --   Portfolio of four Berlin properties notarised for an aggregate 
       consideration of EUR18.75 million (GBP16.89million), excluding 
       acquisition costs; representing a price per square metre of 
       EUR1,970 
 --   The Acquisition represents 132 residential units and 16 commercial 
       units 
 --   Potential reversionary rental opportunities through modernisation, 
       refurbishment and re-letting at current market rates 
 --   Medium term potential to increase the residential footprint 
 --   Following completion, and including other recent acquisitions, 
       Berlin will represent around 74% of the fund's portfolio value 
 --   Following September launch, first Boxhagenerstrasse condominium 
       sale completed, with a further three reserved 
 --   Condominium sale price of EUR4,195 per sqm, a 63% premium to 
       July 2015 acquisition value of EUR2,580 per sqm 
 

The four properties acquired represent over 9,500 square metres of lettable space, 90% of which is residential. Subject to planning permissions, there is scope for attic conversion and the courtyards also offer potential for accretive capex measures as well as new-build. The properties are located in the districts of Mitte and Wedding. Mitte is centrally located and already well established as a favoured location for tenants. Wedding is becoming an increasingly popular residential location and the properties are located in close proximity to the main retail area, benefitting from excellent public transport links.

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

"We are pleased that the Fund continues to make good progress in securing properties. As well as increasing exposure to the attractive Berlin residential market, the newly acquired properties offer significant scope for value creation through active asset management. Notwithstanding the fact that the market for Berlin residential assets remains competitive, these acquisitions demonstrate that the Fund continues to source attractive properties which fit its strict return criteria. The Fund expects to deploy further capital during the remainder of 2016."

Note:

Sterling denominated purchase price value is based on an exchange rate of EUR1.11 to GBP1.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

For further information please contact:

Phoenix Spree Deutschland

Stuart Young [phone]

Liberum Capital Limited

   Richard Crawley                                                                [phone] 

Christopher Britton

Bell Pottinger

Nick Lambert [phone]

Elizabeth Snow

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 14, 2016 02:00 ET (06:00 GMT)