Phoenix Spree Deutschland Limited Stmnt re Share Price Movement (3337C)
14 Junio 2019 - 04:43AM
UK Regulatory
TIDMPSDL
RNS Number : 3337C
Phoenix Spree Deutschland Limited
14 June 2019
Phoenix Spree Deutschland Limited
("Phoenix Spree", or the "Company")
Statement re. Share Price
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed real
estate company specialising in Berlin residential property,
provides a statement regarding new Berlin state rent proposals.
The Board notes the recent weakness in the share price of
Phoenix Spree, which has resulted in the shares trading at a 27%
discount to EPRA Net Asset Value as at 31 December 2018. The
decline in share price is in line with the listed German peer group
and, the Board believes, reflects market concern following press
reports of the possibility of new rent controls being proposed by
the Berlin state government.
Further details of the proposals are expected to emerge during
August, which the Company will review carefully. To the extent that
rental legislation has always been determined under Federal
legislation, the Board believes there are serious concerns
regarding the constitutionality of the new rent proposals and there
is no certainty that these proposals will come into effect. We
would expect an increasing number of legal challenges.
It should be noted that there already exist a number of rent
control instruments in the Berlin market and, during its 12 years
of operation, the Company has adapted many times to the changing
environment while still delivering positive returns to investors
each year. The Board believes the Company has significant strategic
flexibility to adapt its business model if required. As per the
Annual Report over half of the buildings the Company holds are
already split into condominiums
Furthermore, there is a significant body of evidence from other
markets where stringent rent controls have been imposed which seek
to limit rent levels to below that set by the market indicating
that this leads to a reduction in the supply of rental
properties.
As previously disclosed, the Company is in the process of
completing a significant refinancing which will deliver sufficient
liquidity in order to take advantage of opportunities arising from
this uncertainty.
For further Information, please contact:
Phoenix Spree Deutschland Limited
Stuart Young +44 (0)20 3937 8760
Numis Securities Limited (Corporate Broker)
David Benda +44 (0)20 3100 2222
Tulchan Communications (Financial PR)
Elizabeth Snow +44 (0)20 7353 4200
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contact rns@lseg.com or visit www.rns.com.
END
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