Phoenix Spree Deutschland Limited Statement on the Berlin Mietendeckel (9707D)
25 Febrero 2020 - 01:00AM
UK Regulatory
TIDMPSDL
RNS Number : 9707D
Phoenix Spree Deutschland Limited
25 February 2020
25 February 2020
Phoenix Spree Deutschland Limited
(the "Company" or "PSD")
Statement on the Berlin Mietendeckel
Phoenix Spree Deutschland (LSE: PSDL.LN), the UK listed
investment company specialising in German residential real estate,
notes that the new Berlin rent cap ("Mietendeckel") became law
following publication in the official gazette on Sunday 23
February.
The Company set out in September 2019 how it plans to adapt its
strategy during the period in which the proposed rent controls are
in force to mitigate any short-term impact on the portfolio, while
ensuring it maintains maximum strategic optionality in the event
the proposals are found to be unconstitutional. Good progress has
already been made, including share buybacks, condominium splitting
and sales, as well as selective acquisitions in areas in the
Greater Berlin area that are not impacted by the rent control
proposals.
PSD's legal advisors remain of the view that the proposals are
unconstitutional and illegal and that they raise concerns about
whether the state of Berlin is competent to pass local rent
legislation, as the provisions substantially deviate from existing
German federal law.
The opposition in the Berlin House of Representatives and a
quorum of Federal Parliament MPs have already announced that they
intend to have the proposed legislation reviewed by Berlin's
Regional Constitutional Court and the Federal Constitutional Court.
These legal actions were not possible prior to the Mietendeckel
proposals being enacted in law, and it is anticipated that legal
proceedings will commence in the coming months.
It is also possible, but not certain, that, on commencement of
these court hearings, there will be a judicial injunction which
would effectively create a moratorium the implementation of the
Mietendeckel rules pending a final ruling on their legality.
Given the current uncertainty on the timing and outcome of legal
proceedings, the potential financial impact on PSD remains unclear.
The company will provide a further update at the time of its
results for the financial year ended 31 December, expected to be
announced in early April.
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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END
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