Business
Acquisition of Brandenburg Apartment Complex
Acquisition of Brandenburg Apartment Complex.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \nRNS Number : 2301X Phoenix Spree Deutschland Limited 18 December 2019 \n\n18 December 2019\n \nPhoenix Spree Deutschland Limited\nAcquisition of Brandenburg Apartment Complex.\nPhoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, is pleased to announce that it has notarised on an apartment complex in Brandenburg (the \"Property\" or \"Acquisition\").\nThe Property is a former barracks, comprising 259 residential units, one commercial unit and 210 parking spaces. It was redeveloped in 2018/2019 and benefits from efficient floor plans and new build technical standards. \n \nHighlights:\n· Property located in the Greater Berlin region, 30 minutes from the centre of Berlin in an area unaffected by the proposed Mietendeckel rent controls; \n· Share deal with total asset value of €43.5 million (£36.3 million) and net consideration of €24.2 million (£20.2 million) excluding acquisition costs;\n· Transaction intended to be refinanced during 2020, using existing acquisition facility;\n· Refurbishment programme underway, 154 units (60%) completed in 2018/19 with 40 units planned for completion in Q1/2020 and 65 units in Q4/2021;\n· Additional new build potential of a further 60 units;\n· Price per square metre of €2,674 which represents an estimated prospective gross yield of 4.1%;\n· Average residential rent per sqm is €9.02; new lettings in 2019 (22 new leases) of up to €14.01 per sqm;\n· Acquisition expected to complete in December 2019.\nAttractive location with favourable demographics\nThe Property is attractively located in Blankenfelde‐Mahlow, a municipality 7 km south of Berlin. It is not located in a conservation zone, is unlisted and unaffected by the proposed Mietendeckel provisions. There are excellent transport connections to central Berlin and the new Berlin Brandenburg Airport is located 10 km northeast. The micro-location is largely characterised by residential buildings with good infrastructure, including retail shopping, supermarkets, banks, kindergarten and schools. \n \nThe population in Blankenfelde has increased by 32% within the last 10 years and it is anticipated this wil...