27th Sep 2006 14:02
Speymill Deutsche Immobilien Co PLC27 September 2006 Speymill Deutsche Immobilien Company plc ("SDIC" or "the Company") Further Investments Speymill Deutsche Immobilien Company plc (AIM: SIDC), the pan-German residentialproperty investment company listed on AIM, announces further investments. Main highlights at the 26 September 2006 are: - Residential properties in various German cities notarised (i.e. committed to be purchased) for a cumulative cash consideration of EUR429.3 million - Expected initial net rental income of approximately EUR31.6 million per annum - Blended net initial yield of 7.15%, projected to rise to 7.65% within 12 months of full investment The Company has notarised apartment blocks containing 8,034 units at an overallaverage price of EUR799 per square metre. There are approximately 558 vacantunits (7% per cent. vacancy including units to be refurbished or redecoratedprior to letting). The Company expects the occupancy level to rise over timeonce it has had an opportunity to manage the properties. The Board and Speymill Property Managers Limited, the Company's manager, haveascertained that more advantageous financing terms can be achieved throughcross-collaterisation of loans for special purpose vehicles ("SPVs") and, asprovision was made for this in the AIM admission document, it has been decidedto take advantage of better terms available. The Company has secured financing for some specific property packages with aleading Dutch bank at terms that are better than those originally projected andloan documentation is being finalised. The cross-collateralised portfolio andenvisaged debt for the property acquisitions going forward have also been fullyhedged against interest rate risk. We believe that the hedging arrangement willeffectively allow the Company to assume a fixed cost of borrowing of 4.6%. Goingforward, the Company envisages securing financing with two or more banks and isalready in advanced discussions with a leading German bank. The Chairman of SDIC, Raymond Apsey, said, "The acquisition of properties isproceeding well and we are on target to invest within the timeframe set out inthe AIM admission document. Our acquisition pipeline is healthy, and we are alsopleased that financing terms for a significant amount of purchased propertieshas been agreed, in principle." 27 September 2006 Notes to editors: - Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company which listed on AIM on 17 March 2006. - The Company raised £170 million in a placing on its admission. - The Company was established to invest in the German property market and, predominantly, in the residential sector. It is anticipated that once fully invested, the Company will have a balanced portfolio of properties throughout Germany. - The Company's objective is to provide Shareholders with an attractive level of income together with the prospect for long-term capital growth. - The Manager is Speymill Property Managers Limited and the Investment Adviser is GOAL Service GmbH. The Manager and Investment Adviser are responsible for identifying new investment opportunities. - The Manager is a subsidiary of Speymill Group plc (AIM:SYG) while the Investment Adviser is a joint venture partner of Speymill Group plc (which owns 51% of the venture). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sdic Power.