25th Feb 2020 12:16
(Alliance News) - Phoenix Spree Deutschland Ltd on Tuesday noted the passing of the new Berlin rent cap - also known as Mietendeckel - into law on Sunday.
The German real estate-focused investor said it has made good progress in adapting its strategy in preparation for the rent controls coming into effect, including share buybacks and condominium splitting and sales, as well as acquisitions in areas not covered by the rent controls.
Phoenix Spree said it legal advisors still believe that the proposals are unconstitutional and illegal, and questioned whether the state of Berlin is competent to pass such legislation under German federal law.
The opposition in the Berlin House of Representatives have already announced that they will have the proposed legislation reviewed by Berlin's Regional Constitutional Court and the Federal Constitutional Court in the coming months.
Due to uncertainty over the timing and outcome of these legal proceedings, the potential financial impact on Phoenix Spree remains unclear.
The company however, said it will give a further update when it publishes its 2019 results in early April.
Shares in Phoenix Spree Deutschland were down 0.2% at 314.50 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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