Business
Investment property valuation and business update
Investment property valuation and business update.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \n \n \n RNS Number : 9320N\n Phoenix Spree Deutschland Limited\n 04 February 2021\n \n \n \n \n 04 February 2021\n \n \n \n Phoenix Spree Deutschland Limited\n \n \n \n(the \"Company\" or \"PSDL\")\n \n \n \n \n \n Investment property valuation and business update\n \n \n \n \n \n Phoenix Spree Deutschland (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 31 December 2020.\n \n \n \n \n \n Further increase in portfolio value\n \n \n The Berlin residential property market has remained resilient during the financial year and, although transaction volumes remained below peak levels, investment demand observed by Jones Lang LaSalle GmbH (\"JLL\"), the Company's external valuers, continues to support current pricing. JLL have conducted a full RICS Red Book property-by-property analysis, tied back to comparable transactions in the Berlin market, and have provided a portfolio valuation with no matters of concern or material uncertainty raised. The discounted cash flow methodology used by JLL assumes that the Berlin rent cap (\"the Mietendeckel\") is fully implemented by PSD and remains in place for its full five-year lifespan. \n \n \n \n \n \n As at 31 December 2020, the total Portfolio was valued at €768.3 million by JLL, an increase of 5.2% over the twelve-month period (31 December 2019: €730.2 million).\n \n \n \n \n \n On a like-for-like basis, after adjusting for the impact of acquisitions net of disposals, the Portfolio valuation increased by 6.3% in the year to 31 December 2020, and by 3.6% in the second half of the financial year. This increase reflects the combined impact of yield compression, supported by a further decline in interest rates during the financial year.\n \n \n \n \n \n The valuation as at 31 December 2020 represents an average value per square metre of €3,977 (31 December 2019: €3,741) and a gross fully occupied yield of 2.4% (31 December 2019: 2.9%). Included within the Portfolio are nine properties valued as condominiums, with all sales permissions granted, with an aggregate value of €52.4 million (31 December 2019: €26.5 ...