Phoenix Spree Deutschland sells non-core assets for EUR32.5m
Phoenix Spree Deutschland, a UK listed investment company specialising in German residential real estate, has exchanged contracts to sell a portfolio of 17 non-core properties in Nuremberg and Fürth for an aggregate cash consideration of EUR35.25 million.
The properties were originally acquired in 2007 and 2008 for an aggregate purchase price of EUR13.9 million, while sale proceeds represent an 11 per cent premium to the 31 December 2016 Jones Lang LaSalle valuation.
Following completion, and including any acquisitions and disposals which were notarised in 2016 but had yet to complete by the financial year end, properties located in Berlin will represent approximately 82 per cent of the company's portfolio value.
The disposal, which represents an exit from Nuremberg & Fürth, is expected to have a positive impact on EPRA NAV after transaction costs and taxes. Proceeds will be used to reduce debt, fund further acquisitions in Berlin and invest in the existing portfolio.
Phoenix Spree Deutschland was advised on the disposal by PMM Partners (UK) Ltd, property adviser to the company.
Jörg Schwagenscheidt, chief executive of PMM Partners Germany, says: "This is another important milestone for the company. The disposal represents a profitable exit from the region, releasing capital from non-core assets which can be redeployed to increase our exposure to the attractive Berlin residential market.
“We will maintain our highly disciplined approach to acquiring properties in Berlin, targeting those which fit our strict return criteria and where we can continue to add value.”