Phoenix Spree Deutschland Value Up In 2016 With Berlin Outlook Strong

LONDON (Alliance News) - Real estate investment company Phoenix Spree Deutschland Ltd said ...

Alliance News 18 January, 2017 | 9:51AM
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LONDON (Alliance News) - Real estate investment company Phoenix Spree Deutschland Ltd said Wednesday the value of its portfolio increased in 2016, with good market conditions underpinning a positive 2017 outlook.

Phoenix Spree, which specialises in German residential real estate, said its portfolio valuation at the end of December was up 50% year-on-year at EUR423.8 million from EUR282.8 million.

On a like-for-like basis, the company said its portfolio value increased by 19% over the 12-month period, accelerating from 11% growth in 2015.

Phoenix Spree said all its geographical markets saw valuation gains in the period, with Berlin up the most at 24% on a like-for-like basis. Berlin represented 76% of the value of the portfolio at the end of 2016.

The company said since its last portfolio update in October 2016 it has notarised the acquisition of three property packages in Berlin, for an aggregate price of EUR19.9 million. Combined, the properties include 102 residential and nine commercial units and are anticipated to increase rental income by around 4.2%.

Phoenix Spree has also notarised for sale one mixed-use property, with proceeds of EUR3.8 million, a 19% premium to its book value at June 2016.

Phoenix Spree said in the second half of 2016 it committed or drew EUR103.5 million in new debt.

The company will release its 2016 results during April.

"It is pleasing to see that our active asset management strategy, combined with strong market fundamentals in our core business, continue to drive the portfolio valuation. 2016 has seen the company successfully raise equity and debt finance and deploy this capital to increase its exposure to the Berlin residential market," said Robert Hingley, chairman of Phoenix Spree.

"The outlook for 2017 remains strong and we anticipate further growth in rents and property values from a combination of market factors and active asset management," added Hingley.

Shares in Phoenix Spree Deutschland were up 2.5% at 249.36 pence Wednesday morning.

By Adam Clark; adamclark@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Phoenix Spree Deutschland Ord 290.00 GBX 1.75 -

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