Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate (the “Company”), is pleased to announce that it has exchanged contracts to sell a portfolio of 17 non-core properties in Nuremberg and Fürth (“the Disposal”) for an aggregate cash consideration of €35.25m.

Highlights:

  • Properties were acquired in 2007 and 2008 for an aggregate purchase price of €13.9m.
  • Sale proceeds represent an 11% premium to the 31 December 2016 Jones Lang LaSalle valuation.
  • Following completion, and including any acquisitions and disposals which were notarized in 2016 but had yet to complete by the financial year end, properties located in Berlin will represent approximately 82% of the Company’s portfolio value.
  • The Disposal represents an exit from Nuremberg & Fürth. Proceeds will be used to reduce debt, fund further acquisitions in Berlin and invest in the existing portfolio.
  • The Disposal is expected to have a positive impact on EPRA NAV after transaction costs and taxes

Phoenix Spree Deutschland was advised on the Disposal by PMM Partners (UK) Ltd, property advisor to the Company.

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

“This is another important milestone for the Company. The Disposal represents a profitable exit from the region, releasing capital from non-core assets which can be redeployed to increase our exposure to the attractive Berlin residential market.”

“We will maintain our highly disciplined approach to acquiring properties in Berlin, targeting those which fit our strict return criteria and where we can continue to add value.”

For further information please contact:

Phoenix Spree Deutschland
Stuart Young                                                                         +44 (0)20 3937 8760

Liberum Capital Limited (Corporate Broker) 
Richard Crawley                                                                   +44 (0)20 3100 2222
Christopher Britton

Bell Pottinger (Financial PR)  
Elizabeth Snow                                                                     +44 (0)20 3772 2500