Business
Annual Report and Notice of AGM and EGM
Annual Report and Notice of AGM and EGM.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \nRNS Number : 7418G Phoenix Spree Deutschland Limited 31 May 2017 \n\n31 May 2017\n \nPhoenix Spree Deutschland Ltd\n(the \"Company\")\n \n \nAnnual Report and Notice of AGM and EGM\n \nPhoenix 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.\n \nThe 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.\n \nBackground to and reasons for the Proposal:\n \nSince 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: \n \nThe 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 secondar...