Speymill Deutsche Immobilien, the pan-German residential property investment company, has concluded the sale of approximately EUR22m of assets as part of its ongoing asset management initiative.

The sale of this package was completed at a premium to the published valuation contained within the results for the year ended 30 June 2009.

Vacancies in Speymill’s property portfolio remained broadly stable over the final quarter of 2009 as the company continued its refurbishment programme

The company has a number of interest rate swaps outstanding and, in accordance with IFRS, is required to mark these swaps to market at each balance sheet date, irrespective of the intentions of the company to hold the outstanding swaps to maturity or not.

As a result of recent interest rate drops, the accounting value of the swaps as at 31 December 2009 is expected to be negative, with the corresponding loss on the company's income statement, as a result of the change in value, expected to be approximately EUR9.7m.

Any further interest rate movements prior to the maturity of the swaps will result in further changes in value and the corresponding profits or losses will again be recognised in future income statements.

The swaps are tied to the Euribor 3 month rate which has fallen from 1.099 per cent as at 30 June 2009 to 0.700 per cent as at 31 December 2009.

At no stage will the income statement movements, as a result of the swap revaluations, have any cash effect on the company.

Speymill is in the process of reviewing its banking facilities with its lending banks with a view to securing, proactively, additional financing flexibility which may be required to ensure that the company remains in compliance with its loan covenants in the near term. Speymill is currently compliant with all existing terms and covenants of its banking facilities.