Phoenix Spree Deutschland Limited Investment Property Valuation (7072D)
February 02 2018 - 1:00AM
UK Regulatory
TIDMPSDL
RNS Number : 7072D
Phoenix Spree Deutschland Limited
02 February 2018
2 February 2018
Phoenix Spree Deutschland
(the "Company")
Investment Portfolio 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") as at 31(st) December 2017.
Significant portfolio valuation gains
The Portfolio was valued at EUR609.3 million by Jones Lang
LaSalle GmbH, the Company's external valuers, an increase of 43.8
per cent over the twelve-month period (31(st) December 2016:
EUR423.8 million).
This increase was substantially driven by the continued strength
of demand in the Berlin residential market given the significant
undersupply of available rental property and decreasing vacancy
rate. This has led to very strong market conditions and
corresponding further yield compression. It also reflects rental
growth as a result of increased market rents and the ongoing active
management of the portfolio, as well as the net impact of
acquisitions and disposals.
The Company aims to balance the needs of its key stakeholder
groups by working in partnership with its tenants and owners to
make a positive contribution to living standards and the
environment in areas where its properties are located. There has
been significant investment in the Portfolio throughout the year,
as the Company continues its process of modernisation and
renovation of apartments. This has included upgrades to communal
space, such as hallways and staircases, investment in more
efficient heating systems, as well as expenditure on outdoor
service areas and building facades.
The Portfolio valuation represents an average value per square
metre of EUR2,853 (31(st) December 2016: EUR1,965) and an average
gross initial rental yield of 3.4 per cent (31(st) December: 4.8
per cent).
On a like-for-like basis, the Portfolio valuation increased by
37.6 per cent in the twelve months ended 31(st) December 2017. This
compares to like-for-like growth of 19.4 per cent for the twelve
months ended 31(st) December 2016.
Increased Berlin focus
All geographical markets registered valuation gains during the
period, with the Berlin Portfolio increasing to an average of
EUR3,220 per square metre at 31(st) December 2017, up from EUR2,320
per square metre at 31(st) December 2016. This represents an annual
like-for-like increase of 38.8%. Following the disposal of the
Company's Nuremberg and Fürth portfolio, completed in July 2017,
and a portfolio of 34 properties located in Central and Northern
Germany (notarised in December 2017), Berlin represents over 99 per
cent of the Portfolio by value on a pro-forma basis.
The proceeds from these disposals will be used to continue to
source and acquire attractive assets in Berlin. Since 30 June 2017,
the acquisitions of 15 Berlin properties with an aggregate value of
EUR54.2 million have been notarised.
Robert Hingley, Chairman of Phoenix Spree Deutschland,
commented:
"I am delighted at the continued strong performance of the
Portfolio, the best period of growth in the Company's 10-year
history. The valuation gains reflect both the quality of the assets
and portfolio management and a very positive market backdrop.
Following profitable disposals made in the year, the Portfolio is
now fully focused on Berlin, where the Company has acquired further
assets at attractive prices. We will continue to grow the Portfolio
in Berlin, where the market outlook remains strong and where we see
potential for further value and rental growth through continued
investment."
The Company expects to report its results for the twelve-month
period ended 31(st) December 2017 towards the end of April
2018.
For further information please contact:
Phoenix Spree Deutschland
Stuart Young
+44 (0)20 3937 8760
Liberum Capital Limited (Corporate Broker)
Richard Crawley
Christopher Britton
+44 (0)20 3100 2222
Tulchan Communications (Financial PR)
Tom Murray
Elizabeth Snow
+44 (0)20 7353 4200
This information is provided by RNS
The company news service from the London Stock Exchange
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