4th Dec 2015 08:23
LONDON (Alliance News) - German residential real estate investor Phoenix Spree Deutschland Ltd on Friday said it has exchanged contracts to acquire four new properties in Berlin and has sold two in Nurnberg.
The four acquired in Berlin have been bought for a total of EUR19.8 million and cover a total of 150 residential units and 10 commercial units. The new properties are expected to deliver a 5.4% uplift to the company's rental income.
Three of the properties are "altbau" buildings constructed prior to 1914, with two located in the fashionable Prenzlauer Berg district in east Berlin and the others based in south east Berlin.
Phoenix Spree expects the deal to complete in the first quarter of 2016.
In addition, the company has sold two smaller properties in Nurnberg to a local developer at a premium of around 60% to book value. No other financial details were disclosed on that deal.
"These acquisitions meet the fund's acquisition criteria and strategy and offer significant scope for value creation through active asset management. They also demonstrate the fund's ability to execute its strategy of increasing exposure to the highly attractive Berlin residential market, where the significant demand continues to grow thanks to the ongoing urbanisation and population growth," said Chairman Robert Hingley.
Shares in Phoenix Spree were up 0.6% to 153.89 pence on Friday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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