Business
UPDATE ON NON-CORE DISPOSALS AND ACQUISITIONS
UPDATE ON NON-CORE DISPOSALS AND ACQUISITIONS.
About this update from Phoenix Spree Deutschland Ltd
[{"type":"text","content":"\n \nRNS Number : 9892Z Phoenix Spree Deutschland Limited 21 December 2017 \n\nPhoenix Spree Deutschland Ltd\n(The \"Company\" or \"PSDL\")\nUPDATE ON NON-CORE DISPOSALS AND ACQUISITIONS\nPhoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in German residential real estate, is pleased to announce that it has exchanged contracts to sell a portfolio of 34 properties located in Central and Northern Germany (the \"Disposal\") for an aggregate cash consideration of €73.0m. On completion of the Disposal, and including further acquisitions and disposals notarised since 30 June 2017, Berlin is expected to represent over 99% of the Company's Portfolio by value.\nHighlights:\n· The Disposal value represents a 26% premium to the 30 June 2017 Jones Lang LaSalle valuation\n· Proceeds will be used to reduce debt, fund further acquisitions in Berlin and invest in the existing portfolio\n· Further non-core disposals with an aggregate value of €6.7m have been notarised since 30 June 2017, at above book value\n· Aggregate disposal proceeds are expected to have a positive impact on EPRA NAV after transaction costs and taxes\n· Acquisition of 10 Berlin properties with an aggregate value of €36.5m have been notarised since 30 June 2017\n· Following completion of all transactions notarised to date, PSDL will effectively become a pure play Berlin fund. The Board is convinced that the Berlin market remains highly attractive and offers significant potential to develop the Company's business further\nDisposals\nThe non-core portfolio being sold by the Company for a total consideration of €73.0m comprises 34 properties located in Bremen, Hannover, Hildesheim, Verden, Delmenhorst, Kiel, Oldenburg, Lüneburg and Lübeck. These buildings were acquired in 2006/2007 for an aggregate purchase price of € 38.7m and the sale price represents a 26% premium to the Jones Lang LaSalle valuation as at 30 June 2017. \nAdditionally, since 30 June 2017, a further four properties located in Central & North Germany have been notarised for sale for a combined consideration of €6.7m, 11% above the 30th June 2017 book value.\nThe combined proceeds from disposals of €79.7m are expected to have a pos...