TIDMPSDL
RNS Number : 4097U
Phoenix Spree Deutschland Limited
18 January 2017
18 January 2017
Phoenix Spree Deutschland Ltd
Investment Property Valuation & Portfolio Update
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed
investment company (the "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"), together with an update on
acquisitions, condominium sales and funding.
Highlights
-- Portfolio valuation, as at 31st December 2016, of EUR 423.8
million, a 49.9% increase (2015: EUR282.8m).
-- On a like-for-like basis, Portfolio value increased by 19.4% in the 12 month period.
-- Disposal of a non-core, mixed use property for EUR3.8m, an
18.8% premium to June 2016 book value.
-- Including EUR19.9m of acquisitions and EUR6.3m of disposals
which were notarised in the period but are yet to complete, the
portfolio value was EUR437.4m, with Berlin representing 76% by
value.
-- Significant balance sheet developments, with new debt of
EUR101.4million signed during H2 2016; average debt maturity
extended to over 7 years; and the average interest rate reduced to
below 2%. During the past 24 months, 98% of Fund's current debt has
been refinanced.
-- Berlin residential market conditions remain favourable,
underpinning a positive outlook for 2017.
Investment Property Valuation
As at 31st December 2016, the Portfolio was valued by Jones Lang
LaSalle GmbH, the Company's external valuers, at EUR423.8 million
(31st December 2015: EUR282.8 million). This represents an increase
of 49.9% over the twelve-month period. The increase in valuation
reflects: yield movement; adjustments due to improved property
condition; rental income increases; market rent adjustments; and
the net impact of acquisitions, disposals and condominium sales of
EUR87.0 million.
On a like-for-like basis, the Portfolio valuation increased by
19.4% in the twelve months ended 31st December 2016. This compares
to like-for-like growth of 10.7% for the year ended 31st December
2015.
All geographical markets registered valuation gains during the
period, with Berlin seeing the largest like-for-like increase at
24.3%, followed by Nuremberg & Furth 12.0%, and Central &
North Germany 10.4%.
The Portfolio valuation represents a value per square metre of
EUR1,965 (31st December 2015 EUR1,635) and a gross initial rental
yield of 4.8% (31st December 2015: 5.7%).
Acquisitions & Disposals
Since the last portfolio update on 14(th) October 2016, the
Company is pleased to announce that it has notarised the
acquisition of a further three property packages in Berlin
("Acquisitions") for an aggregate purchase price of EUR19.9
million. Combined, they represent 102 residential and 9 commercial
units, with a purchase price per square metre of EUR2,089. The
Acquisitions are expected to complete in 1Q 2017, and it is
anticipated they will increase the Fund's rental income by around
4.2 %.
The largest acquisition, which consists of 56 residential units
and four commercial units, is located on the main shopping street
in the Pankow district, Weißensee. Two further property
acquisitions (one consisting of 23 residential units and one
commercial unit, the other 23 residential and four commercial
units) are located in Tempelhof district.
The Company has notarised for sale a mixed use property deemed
to be non-core. This property has a high commercial component and
is located in Teltow, Brandenburg. The sale proceeds of EUR3.8m
represent a 18.8% premium to June 2016 book value.
Including acquisitions, disposals and condominium sales which
were notarised, but not completed as at 31 December 2016 (and
therefore excluded from the year-end portfolio valuation), the
portfolio value as of 18 January was EUR437.4m, with Berlin
representing 76% of the Portfolio by value.
Acquisitions completed or notarised since London Stock Exchange
listing in June 2015 total EUR114.1m, and the Fund expects to
deploy further capital during H1 2017.
Condominiums
Condominium sales have commenced at the Company's third project,
Boxhagenerstrasse, which was acquired in late 2015. The first sales
were made during Q4 2016 and the average value per sqm achieved was
EUR4,110. This compares to the acquisition price of the property of
EUR2,585 per sqm.
During the year to 31(st) December 2016 a total of 22
condominiums were sold or notarised for sale representing an
aggregate sales value of EUR5.7m. The average achieved price per
square metre for these properties was EUR3,762, and represents a
91.4% premium to the average valuation per square metre for
properties across the entire Portfolio.
Further condominium sales are anticipated during 2017 from
projects already underway, and additional projects are being
considered.
Funding
In March 2016, the Company successfully completed a GBP38m share
placing, the proceeds of which are being used to fund further
property acquisitions and to invest in the existing portfolio.
Since 30(th) June 2016, loans amounting to EUR19.9million have
been arranged to finance new property acquisitions, and a further
EUR59.1million has been successfully refinanced. Additionally, an
equity release from the portfolio of EUR22.3m has been agreed, of
which EUR20.2m has been drawn. Taken together, and including
drawdowns from existing facilities, total new debt of EUR103.5m has
been committed or drawn during H2 2016.
At 30(th) June 2016, the average loan maturity for the fund was
5.5 years. The actions taken since then have extended the average
maturity to over 7 years, which is in line with the Fund's policy
of increasing the debt maturity profile. The average interest rate
of the Fund's debt has also modestly improved and is now just below
2%. Active balance sheet management has resulted in 98% of the
Fund's existing debt being refinanced in the past 24 months.
Robert Hingley, Chairman of Phoenix Spree Deutschland,
commented:
"It is pleasing to see that our active asset management
strategy, combined with strong market fundamentals in our core
business, continue to drive the Portfolio valuation. 2016 has seen
the Company successfully raise equity and debt finance and deploy
this capital to increase its exposure to the Berlin residential
market. The outlook for 2017 remains strong and we anticipate
further growth in rents and property values from a combination of
market factors and active asset management."
The Company expects to report its results for the twelve-month
period ended 31(st) December 2016 during April 2017.
Note: 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 +44 (0)20 7292 7087
Liberum Capital Limited
(Corporate Broker)
Richard Crawley
Christopher Britton +44 (0)20 3100 2222
Bell Pottinger (Financial
PR)
Nick Lambert
Elizabeth Snow +44 (0)20 3772 2582
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGGURUGUPMGBM
(END) Dow Jones Newswires
January 18, 2017 02:00 ET (07:00 GMT)
Phoenix Spree Deutschland (LSE:PSDL)
Historical Stock Chart
From Apr 2024 to May 2024
Phoenix Spree Deutschland (LSE:PSDL)
Historical Stock Chart
From May 2023 to May 2024