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17 Nov 2010 15:30
17 November 2010
Speymill Deutsche Immobilien Company plc
("SDIC" or "the Company")
Acquisition of GOAL
Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces that it has entered into an agreement to acquire the entire issued share capital of GOAL service GmbH ("GOAL") from Speymill Property Group (UK) Limited ("SPGUK") (part of the Speymill plc group) which will complete on 18 November 2010. As part of this agreement, Speymill plc will retain the ownership of GOAL construction GmbH, a wholly owned subsidiary of GOAL, within the Speymill plc group. This acquisition completes the internalisation of the Company's management, investment advisory and property management functions ("Internalisation").
The Company has agreed to pay a total consideration of €1.03 million comprising an amount in relation to the adjusted Net Asset Value of GOAL and the settlement of certain intercompany balances between GOAL and SPGUK.
In addition, the Company has agreed to settle an amount of €700,000 in relation to outstanding fees payable by SDIC in relation to GOAL services provided historically.
The consideration for the acquisition of GOAL and the settlement of the outstanding fees will be satisfied by the issue of a convertible loan note to SPGUK. As previously announced, the terms of the convertible loan note will be as follows:
- Repayable or convertible at the Company's option;
- Conversion at the average closing price of the Company's shares over a 90 day period following the completion of the debt restructuring;
- Interest equal to the gross yield on the 2 year German Government bond plus margin of 1.5%; and
- Maturity on 31 May 2011.
As previously stated, the Internalisation is an important step towards achieving an overall funding solution with GOAL continuing to manage the Company's property portfolio but reporting directly to the board of SDIC. It is also anticipated that it will enable the Company to realise cost savings.
For more information, please visit http://www.speymilldeutsche.com or contact:
SMP Partners Limited | +44 1624 682 216 |
(Administrator) | |
Vincent Campbell | |
Smith & Williamson Corporate Finance Limited | +44 20 7131 4000 |
(Nominated Adviser) | |
Azhic Basirov | |
Siobhan Sergeant | |
Fairfax I.S. PLC | +44 20 7598 5368 |
(Brokers) | |
James King | |
Gillian McCarthy | |
Tavistock Communications Limited | +44 20 7920 3150 |
(Media & Investor Relations) | |
Jeremy Carey | |
Simon Hudson | |
Notes to Editors:
Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company, which listed on the AIM market of the London Stock Exchange in March 2006, raising £170 million. In May 2007, SDIC raised a further €250 million through a C share placing. The Euro denominated fund aims to provide investors with an attractive level of income together with the prospect for long-term capital growth.
The German residential market is viewed as attractive to investors due to a number of factors including rising German economic activity and productivity, and the availability of assets at below replacement cost. Acquired properties should, through active management, also have the potential for increased rental rates and accordingly improved capital values and increased yield.
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