Phoenix Spree Deutschland Limited Annual Report and Notice of AGM and EGM (7418G)
01 June 2017 - 12:41AM
UK Regulatory
TIDMPSDL
RNS Number : 7418G
Phoenix Spree Deutschland Limited
31 May 2017
31 May 2017
Phoenix Spree Deutschland Ltd
(the "Company")
Annual Report and Notice of AGM and EGM
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed
investment company specialising in German residential real estate,
announces that the Annual Report and Accounts for the year ended 31
December 2016, the Notice of the Annual General Meeting ("AGM") and
the Notice of an Extraordinary General Meeting ("EGM") have been
posted to shareholders.
The purpose of the EGM is to seek approval from shareholders to
make an amendment to the Company's investment policy (the
"Proposal"). As one of the amendments is considered to be material,
the approval of shareholders is required in accordance with the
Listing Rules. The proposed amendment of the investment policy has
been approved by the FCA in accordance with the Listing Rules.
Background to and reasons for the Proposal:
Since the Company's introduction to listing, the Company has
been required by its investment policy to ensure that its property
acquisitions meet the condition that they deliver a fully let yield
of at least 4 per cent. in Berlin and 5 per cent. in other German
cities. In complying with these requirements the Company has found
itself unable to invest in potentially attractive properties that
cannot meet this short term income yield requirement but would be
expected to generate attractive returns over the medium to longer
term. In practice, the Company and its Property Advisor have found
they use medium term IRR as the appropriate, risk weighted metric
to evaluate the relative attractiveness of a potential acquisition
because focussing investment criteria on short term income returns
misses the medium term value creation potential from value-add
asset management (such as modernisation and renovation), limited
development of properties and condominium sales. The Company
therefore proposes to change its relevant metric from a fully let
yield to a target medium term IRR as per the following proposed
amendment:
The Company will seek to invest in properties or portfolios of
properties which are expected to deliver a fully-let yield of at
least 4 per cent. in Berlin and 5 per cent. in other secondary
German cities deliver a medium term IRR of not less than 8 per
cent.
Extraordinary General Meeting
The Proposal is conditional on the approval by shareholders at
the Extraordinary General Meeting, which has been convened for
10.15 a.m. on 26 June 2017 at 13-14 Esplanade, St Helier, Jersey,
JE1 1EE, Channel Islands.
Recommendation
The Board considers that the Proposal is in the best interest of
the Company and its shareholders as a whole. Accordingly the Board
unanimously recommends that shareholders vote in favour of the
resolution to be proposed at the Extraordinary General Meeting to
approve the Proposal (the "Resolution"). The Directors intend to
vote in favour of the Resolution in respect of their own beneficial
holdings of shares in the Company.
Annual General Meeting
The Company also announces that its Annual General Meeting will
be held at 13-14 Esplanade, St Helier, Jersey, JE1 1EE, Channel
Islands at 10.00 a.m. on 26 June 2017. The Notice of AGM has been
dispatched to all shareholders.
An electronic copy of the Annual Report and Accounts, the Notice
of AGM and Notice of EGM are available on the Company's website and
will shortly be submitted to the National Storage Mechanism which
can be accessed at http://www.morningstar.co.uk/uk/NSM.
For further information please contact:
Phoenix Spree Deutschland +44 (0)20 7292
Stuart Young 7087
Liberum Capital Limited (Corporate
Broker)
Richard Crawley +44 (0)20 3100
Christopher Britton 2222
Bell Pottinger (Financial PR)
Nick Lambert +44 (0)20 3772
Elizabeth Snow 2500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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