Sdic Power. Regulatory News (SDIC)

27 Nov 2006 07:01

Speymill Deutsche Immobilien Co PLC27 November 2006 Speymill Deutsche Immobilien Company plc ("SDIC" or "the Company") Further Investments Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residentialproperty investment company listed on AIM, announces further investments. Main highlights at 24 November 2006 are: - Residential properties in various German cities notarised (i.e. committed to be purchased) for a cumulative cash consideration of EUR574.2 million - To date 71% of these notarised properties are in the former West Germany, 9% in Berlin and 20% in the former East Germany - Expected initial net rental income of approximately EUR41.9 million per annum - Blended net initial yield of 7.1%, projected to rise to 7.6% within 12 months of full investment The Company has notarised apartment blocks containing 10,532 units (residentialunits - 10,255 and commercial units - 277) at an overall average price of EUR804per square metre. Total rentable space is 714,006 square metres. There are presently approximately 828 vacant units (circa 8% overall vacancyincluding units to be refurbished or redecorated prior to letting). The Companyexpects the occupancy level to rise over time once it has had an opportunity tomanage the properties. The Manager intends to raise occupancy through activemanagement with proactive leasing and refurbishment where appropriate.Approximately EUR16.6million is planned to be allocated on refurbishment forthose properties currently notarised and this expenditure is expected to beyield and value enhancing. Last week, agreement in principle was reached with a European bank for thefinancing of further property purchases. Subject to contract, the Company expects this financing transaction to be concluded in early December. This will mean the Company will have received approximately EUR407m of debtfinancing with the interest rate fixed at 4.6% and this debt will represent atleast 85% of original purchase price. The property acquisitions going forwardhave also been fully hedged against interest rate risk, allowing the Company toassume a maximum overall fixed cost of borrowing of 4.6%. For purposes of bank valuations, the portfolios of assets being financed havebeen valued by DTZ at a weighted average of a 6.0% increase to purchase price.The Manager is preparing a further portfolio of properties for valuation andfinancing. Approximately EUR70 million of further properties have been approved by theBoard to proceed to notarisation. An additional property acquisition pipeline of over EUR400 million has beenidentified. 27 November 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 Exchange