24th Jul 2007 07:00
Public Service Properties Inv Ltd24 July 2007 24 July 2007 Public Service Properties Investments Limited ("PSPI" or "the Company") Annual General Meeting - Trading Update At the Annual General Meeting to be held today at 1400h in Jersey, PublicService Properties Investments Limited (AIM: PSPI), a specialist European realestate investment and financing company, will provide an update on currenttrading as follows: "The Company's strategy, set out in the prospectus at the time of Admission toAIM in March 2007, remains unchanged - to acquire additional care homes in theUK and in Germany at prices which will enable PSPI to add value to theproperties through efficient operation and investment. "PSPI's initial focus has been to acquire care homes in Germany to add to theexisting £155 million investment property portfolio, primarily located in the UKcare home sector. This focus remains in place, although changes in taxationrules which have recently been proposed in Germany have necessitated additionaldue diligence. These tax changes are not expected to impact on PSPI's investmentmodel, or anticipated returns, but they do affect the structures which theCompany must put in place to invest in a tax efficient manner. "The Company, with its German adviser IMMAC, has identified, and is in advancednegotiations to acquire assets valued at some €80-90 million for which PSPIexpects to announce exchange and/or completion by the fourth quarter of 2007.Additional German assets are being reviewed, also for acquisition in the fourthquarter. The Company has continued to examine opportunities in the UK market andanticipates making an acquisition valued at approximately £23 million by earlySeptember. "PSPI's asset manager, RP&C International, has continued to identifyopportunities to enhance the value of the existing UK portfolio through bedcapacity expansion. Further value is being added to the UK care homes as aresult of automatic annual rent escalators based on the Retail Price Index. Inthat connection, 90% of PSPI's UK leases were subject to annual rent reviewsbetween December 2006 and May 2007 and has resulted in an average increase inrent of 4.3%. "The Board anticipates being able to announce substantial acquisitions in itstarget territories and asset classes by the end of 2007 as well as the furtheraddition of value to existing assets. PSPI has made a good start to life as apublicly listed company and will report further progress to shareholders in duecourse." - ends - For further information please visit www.pspiltd.com or call: Dr D Srinivas Tim Worlledge Rachel DrysdaleRalph Beney Jeremy Ellis Simon HudsonRichard Borg Chris Clarke RP&C International Evolution Securities Limited Tavistock CommunicationsTel: 020 7766 7000 Tel: 020 7071 4300 Tel: 020 7920 3150 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
PSPI.L