9th Jul 2007 09:09
Speymill Deutsche Immobilien Co PLC09 July 2007 Speymill Deutsche Immobilien Company plc ("SDIC" or "the Company") First Investments re the C Share Portfolio Speymill Deutsche Immobilien Company plc (AIM: SDIC; SDCC), the pan-Germanresidential property investment company listed on AIM, announces firstinvestments for the second tranche of funds raised ("the C Share Portfolio"). Main highlights as at 30 June 2007 are: - Residential properties in and around various German cities and towns notarised (i.e. committed to be purchased) for a cumulative cash consideration of approximately EUR50.9 million. - Expected initial net rental income (as at notarisation) of approximately EUR2.8 million per annum (though this will effectively rise due to some initial rental guarantees for vacancies during some refurbishments). - Blended net initial property yield (as at notarisation) of 5.6%, anticipated to rise to 7.7% at the end of the period commencing 12 months after fully completed investments, property management takeover and completion of refurbishments. Approximately EUR39.6 million of the current notarised properties have a lowerinitial yield due to vacancies and a planned refurbishment schedule. However,rental guarantees will be put in place for these properties from completion ofthe investments lasting until 12 months from completion of the refurbishmentwork on each building, respectively. As a result, these properties are expectedto deliver annual rental income of almost EUR3.1 million from the outset,equating to a net initial property yield of approximately 7.7%. The Company has notarised apartment blocks containing 1,086 units at an overallaverage price of EUR731 per square metre. There were approximately 322 vacantunits at notarisation (circa 29.6% vacancy including some 315 units covered byinitial rental guarantees and scheduled to be refurbished or redecorated priorto letting). Refurbishment related costs of over EUR427,000 are to be borne by the fund entities and over EUR8 million is to be covered by the selling entities for those properties currently notarised. After contract completion and when the properties have been taken over, refurbished and are fully under management for a suitable period, the Company will target a 95% overall occupancy rate (allowing for some natural vacancy and tenant fluctuation). It is envisaged that this target will be reached in the second year after takeover. 9 July 2007 Contact: Smith & Williamson Corporate Finance Limited +44 (0)20 7131 4000 Azhic Basirov / Siobhan Sergeant Notes to editors: - Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company which listed on AIM on March 2006, raising £170 million on admission. - In May 2007, the Company raised a further EUR250 million through a placing of C Shares which were admitted to trading on AIM on 10 May 2007. - 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.