Business
Portfolio Valuation and Condominium Agreement
Portfolio Valuation and Condominium Agreement.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \nRNS Number : 2791I Phoenix Spree Deutschland Limited 08 August 2019 \n\n \n8 August 2019\n \n \nPhoenix Spree Deutschland Limited \n(The \"Company\" or \"PSDL\")\n \nPortfolio Valuation and Condominium Agreement\n \nBerlin Investment property valuation increases 3.7% for the half year to 30 June 2019\n \nPhoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces the interim valuation for the portfolio of investment properties held by the Company and its subsidiaries (the \"Portfolio\").\n \nIncreased portfolio value\nAs at 30 June 2019, the Portfolio was valued at €665.2 million by Jones Lang LaSalle GmbH, the Company's external valuers (31 December 2018: €645.7 million). \n \nOn a like-for-like basis, after adjusting for the impact of acquisitions net of disposals, the Portfolio valuation increased by 3.9 per cent in the six months ended 30 June 2019. This reflects the combined impact of market rental growth and the active management of the Portfolio. \n \nNew condominium agreement with Accentro Real Estate AG\nSince the start of sales in Boxhagener Strasse, the Company's largest condominium project to date, the Company has successfully sold a total of 42 residential units and 3 commercial units to owner-occupiers, tenants and investors. The majority of the remaining 22 units are currently occupied.\n \nIn order to accelerate the sales process of the remaining Boxhagener Strasse units, the Company has concluded an agreement with Accentro Real Estate AG, one of Germanys leading condominium sales platforms. \n \nUnder the terms of this agreement, Accentro will market the remaining Boxhagener Strasse units through their extensive network on behalf of PSDL. After 18 months, Accentro is contracted to purchase any unsold units from the fund for a cash consideration, guaranteeing revenues on completion of contract. \n \nUpdate on proposed rent controls \nThe proposed new Berlin State rent controls continue to create significant uncertainty which has negatively impacted the Company share price, resulting in a valuation discount to EPRA Net Asset Value as at 31 December 2018 of 28.6%. Both the share price decline and the discount are in li...