Back to announcements list
Termination of forward funding commitment
RNS Number : 8461Y
Phoenix Spree Deutschland Limited
08 January 2024
 

Phoenix Spree Deutschland Limited     
(the "Company", the "Group" or "PSD")

 

Termination of forward funding commitment to Erkner development project.

 

Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces the termination of its forward funding commitment to a portfolio of development properties in Brandenburg.

The development, located in Erkner, was a forward funded transaction to develop 34 semi-detached houses in the outskirts of Berlin, and was due to complete in Summer 2024.

The Company has elected not to continue with the project given the decline in property values that has been observed across Berlin during the past 18 months and more expensive financing conditions. The decision is in line with the Company's previous commitment not to undertake further acquisitions and to ensure leverage is maintained at an appropriate level  for the current stage in the real estate cycle.

The counterparty to the transaction is The Grounds, a German real estate developer. The Company had made an initial payment of €5.5m after notarisation in March 2022, and the disposal removes the requirement to fund a further €13m of development payments in 2024.

No penalty payments are attached to the cancellation of the project  and no further payments will be made by the Company. The Company additionally anticipates that it will be able to reclaim approximately €1.2m in real estate transfer tax which had previously been incurred on the project.

This disposal accelerates the Company's strategy of reducing debt and, ultimately, returning capital to investors from disposals. The impact on EPRA NTA is expected to be less than one per cent.

Portfolio valuation and trading update

The Company intends to publish its Portfolio valuation and trading update for the year ended 31 December 2023 on 7 February 2024.

 

For Further Information, Please Contact:

Phoenix Spree Deutschland Limited                                              +44 (0) 20 3937 8760

Stuart Young

 

Numis Securities Limited (Corporate Broker)                               +44 (0) 20 7260 1000

David Benda

 

Teneo (Financial PR)                                                                         +44 (0) 20 7353 4200

Lizzie Snow

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCUVOBRSKUARAR