6
November 2024
Phoenix Spree Deutschland
Limited
(the
"Company" or "PSD")
Business
update
UPDATE ON CONDOMINIUM SALES,
APPOINTMENT OF CONDOMINIUM BROKERS AND AGREEMENT WITH
TERMIOS.
Phoenix Spree Deutschland (LSE:
PSDL.LN), the specialist investor in Berlin residential real
estate, provides an update on condominium sales, including progress
on its proposed accelerated condominium sales strategy and plans to
test and install heating optimisation systems for PRS
buildings.
Condominium sales momentum continues
As previously announced, condominium
sales during first half of the financial year showed a marked
improvement, with fifteen units notarised for sale for an aggregate
value of €5.3 million in H1 2024. Positive momentum has continued
and, since the half-year end, a further ten units, with a combined
value of €4.0 million have been either notarised or reserved for
sale. Sales in the second half include the highest value apartment
sold by PSD, a newly constructed attic apartment which was sold in
a bare shell condition for €950,000 or €4,720 per sqm.
Year-to-date, condominiums have been
notarised at an average price of €4,122 per sqm. This represents a
19 per cent premium to the H1 2024 JLL Portfolio valuation and a 52
per cent premium to the Portfolio value per sqm implied by the
share price as at 5 November 2024. Vacant condominiums have been
notarised at an average premium of 31 per cent to the H1 2024
Portfolio valuation and a 68 per cent premium to the Portfolio
value implied by the share price as at 5 November 2024.
Appointment of two leading condominium sales
brokers
Plans to significantly increase the
number of condominiums that can be made available for sale in the
future are nearing completion. The Company is pleased to announce
that it has concluded negotiations with two leading condominium
sales platforms Engel & Völkers and Lübke Kelber to work
alongside QSix's existing sales platform, IWA. These platforms will
significantly broaden market reach, including internationally, of
PSD's existing condominium sales and marketing
activities.
Framework agreement reached to test and install heating
optimisation systems
The Company has entered into a
framework agreement with termios.Pro ("termios"), a leading
provider of green solutions for heating, sustainability and ESG for
residential properties, to test and supply heating optimisation
systems. Termios is a part owned by LEG Immobilien SE and, under
the terms of the framework agreement, a pilot will be established.
If the testing phase is successful, the Company will consider
entering a formal contractional agreement, with roll-out across a
substantial part of the PRS portfolio thereafter.
The termios system operates by
utilising smart thermostats which, once installed, automatically
regulate the hydraulic balancing of the heating system for
individual radiators within units and enable intelligent control of
heating energy through further smart energy saving features.
Initial tests previously undertaken by termios in similar Altbau
buildings have indicated that energy savings of up to 20 per cent
in total may be achievable.
Energy focused capex is expected to
increase property values, reduce operational costs and potentially
lead to more favourable long-term financing options. By enhancing
the energy efficiency of buildings, the Company expects to broaden
the pool of prospective buyers, including pension funds and
insurance companies, as market conditions improve.
Portfolio sale negotiations at an advanced
stage
The Company has previously announced
that it is in advanced negotiations to sell a portfolio of 16
buildings rented on a PRS basis. Further details on the terms of
this transaction will be announced as and when it becomes
unconditional.
For
further information, please contact:
|
Phoenix Spree Deutschland
Limited
Stuart
Young
|
+44 (0)20 3937 8760
|
|
Deutsche Numis (Corporate
Broker)
David Benda
|
+44 (0)20 3100 2222
|
|
Teneo (Financial PR)
|
+44 (0)20 7353 4200
|
Lizzie Snow / Annushka
Shivnani
Notes to Editors:
About Phoenix Spree Deutschland
Founded in 2007 and listed on the
London Stock Exchange in 2015, Phoenix Spree is a long-term
investor in Berlin's residential, mid-market rental property. QSix
Residential Limited acts as our Property Advisor, carrying out the
day-to-day operations of the Company. It has an experienced team of
property professionals with long-standing experience of the German
residential property market.
About termios
Termios is a joint venture founded
in 2023 by the Munich-based business builder mantro GmbH, the
Sauerland family-owned fittings manufacturer Oventrop and the
Düsseldorf-based LEG Immobilien SE. The company specialises in the
development of green solutions for heating, sustainability and ESG
for residential properties. It provides efficient energy
optimization for residential buildings through heating control and
hydraulics as well as digitization and technology
services.