Business
Investment Property Valuation
Investment Property Valuation.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \n \n RNS Number : 7033V\n Phoenix Spree Deutschland Limited\n 11 August 2020\n \n \n \n \n 11 August 2020\n \n \n Phoenix Spree Deutschland Limited\n \n \n (\"PSD\" or the \"Company\")\n \n \n Investment property valuation and business update\n \n \n Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces the valuation for the portfolio of investment properties held by the Company and its subsidiaries (the \"Portfolio\") as at 30 June 2020.\n \n \n \n \n \n Further increase in portfolio value\n \n \n The Berlin residential property market has remained stable in the first half of the financial year and, although transaction volume has reduced, investment demand observed by Jones Lang LaSalle GmbH continues to support current pricing. JLL have conducted a full RICS red book property-by-property analysis and have provided a portfolio valuation, with no matters of concern or material uncertainty raised. The methodology used by JLL assumes that the Berlin rent cap (\"the Mietendeckel\") is fully implemented by PSD and is in place for its five-year lifespan.\n \n As at 30 June 2020, the Portfolio was valued at €746.7 million (31 December 2019: €730.2 million). This represents a 2.3% increase over the six-month period. On a like-for-like basis, excluding the impact of disposals, the Portfolio value increased by 2.6% in the six-month period. This increase reflects the combined impact of modest yield compression, supported by a decline in interest rates, and the active management of the portfolio.\n \n The valuation as at 30 June 2020 represents an average value per square metre of €3,839 (31 December 2019: €3,741), a gross fully occupied yield of 2.8% (31 December 2019: 2.9%) and a net yield, using EPRA methodology, of 2.4% (31 December 2019: 2.3%). Included within the Portfolio are 6 properties valued as condominiums, with an aggregate value of €33.0 million (31 December 2019: 5 properties, aggregate value €26.5 million).\n \n \n \n \n Limited impact from COVID-19\n \n To date, the impact of the COVID-19 pandemic on rent collection levels has been limited with rent collection in the six months to 30 June 2020 broadly in line with the six months to 30 June 2019.\n \n \n Residential rent collection h...