Phoenix Spree D Regulatory News (PSDL)

25 January 2022 

Phoenix Spree Deutschland Limited 

 (The "Company" or "PSDL") 

Completion of new €60 million loan facility and refinancing of existing debt.  

Increased flexibility to maintain investment into existing Portfolio of assets and pursue potential future acquisitions 

As part of its ongoing financing activities, Phoenix Spree Deutschland Limited (LSE: PSDL.LN), the UK listed investment company specialising in Berlin residential real estate, announces the completion of a new €60 million loan facility (the "New Facility") and the refinancing of existing debt on improved terms (the "Refinancing") 

New Facility agreed with Natixis 

The New Facility agreed with Natixis Pfandbriefbank AG ("Natixis") on 29 December 2021, comprises two components: a €45 million Acquisition Facility (the "Acquisition Facility") and a €15 million Capex Facility (the "Capex Facility"). 

The New Facility matures in September 2026 and carries an interest rate of 1.15% over 3-month Euribor. It can be used to finance up to 100% of the total cost of both acquisitions and capex. When drawn, it is non-amortising and terms to protect against future adverse interest rate movements have been agreed.

The Acquisition Facility provides the Company with additional flexibility to pursue potential future acquisitions if suitable opportunities, which offer clear value for shareholders, arise.

The Capex Facility will allow the Company to continue to undertake its extensive capex programme. The Company remains committed to improving living standards for its tenants and fulfilling its environmental obligations and, following the removal of the Berlin rent controls ("the Mietendeckel"), has been able to resume its comprehensive programme of vacant apartment renovations and modernisations.

Refinancing agreed with Berliner Sparkasse 

Additionally, the Company is pleased to announce the refinancing of existing debt provided by Berliner Sparkasse. The Refinancing was agreed on 17 January 2022 and leverages the increase in valuation of certain underlying assets within the Portfolio, releasing a further €14.9 million of equity. Following completion, the total value of the loans that have been refinanced is €49.7 million and the maturities remain unchanged (at between five and six years). The interest rate payable on these loans is lower than the current portfolio average and no additional hedging instruments for adverse interest rate movements are required.

The equity released by the Refinancing can be reinvested into the Portfolio, including future potential share buy-backs. 

Robert Hingley, Chairman of Phoenix Spree Deutschland Limited, commented: 

 "We are delighted that we continue to deepen our relationship with Natixis and Berliner Sparkasse by agreeing further credit facilities which provide the Company with the flexibility to pursue potential future acquisitions and to continue with our significant levels of investment into the existing Portfolio of assets. Against positive long-term demographic trends and a stabilising political backdrop, the completion of these transactions underpins our confidence in the future of the Berlin residential property market and will allow us to continue to deliver value to our shareholders." 

The Company expects to report its Portfolio Valuation for the financial year ended 31 December 2021 in early February 2022.

Legal Entity Identifier: 213800OR6IIJPG98AG39

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