Phoenix Spree Deutschland Limited Termination of forward funding commitment (8461Y)

TIDMPSDL

RNS Number : 8461Y

Phoenix Spree Deutschland Limited

08 January 2024

Phoenix Spree Deutschland Limited

(the "Company", the "Group" or "PSD")

Termination of forward funding commitment to Erkner development project.

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces the termination of its forward funding commitment to a portfolio of development properties in Brandenburg.

The development, located in Erkner, was a forward funded transaction to develop 34 semi-detached houses in the outskirts of Berlin, and was due to complete in Summer 2024.

The Company has elected not to continue with the project given the decline in property values that has been observed across Berlin during the past 18 months and more expensive financing conditions. The decision is in line with the Company's previous commitment not to undertake further acquisitions and to ensure leverage is maintained at an appropriate level for the current stage in the real estate cycle.

The counterparty to the transaction is The Grounds, a German real estate developer. The Company had made an initial payment of EUR5.5m after notarisation in March 2022, and the disposal removes the requirement to fund a further EUR13m of development payments in 2024.

No penalty payments are attached to the cancellation of the project and no further payments will be made by the Company. The Company additionally anticipates that it will be able to reclaim approximately EUR1.2m in real estate transfer tax which had previously been incurred on the project.

This disposal accelerates the Company's strategy of reducing debt and, ultimately, returning capital to investors from disposals. The impact on EPRA NTA is expected to be less than one per cent.

Portfolio valuation and trading update

The Company intends to publish its Portfolio valuation and trading update for the year ended 31 December 2023 on 7 February 2024.

For Further Information, Please Contact:

   Phoenix Spree Deutschland Limited                                              [phone] 

Stuart Young

   Numis Securities Limited (Corporate Broker)                               [phone] 

David Benda

Teneo (Financial PR) [phone]

Lizzie Snow

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January 08, 2024 02:00 ET (07:00 GMT)