Last checked at 23 Jul 2010 07:00
23 July 2010
Speymill Deutsche Immobilien Company plc
("SDIC" or "the Company")
Internalisation of Management and Director Change
Internalisation
Further to the announcement on 17 June 2010 regarding the internalisation of management, the Board of SDIC is pleased to announce that it has signed an agreement terminating the Investment Management Agreement ("IMA") with, inter alia, Speymill Property Group Limited ("SPG") and, at the same time, has entered into a continuing services agreement. The agreements are effective from 1 June 2010 and are on the same terms as previously announced.
The signing of these agreements is a further step towards the completion of the internalisation of the management, investment advisory and property management functions. The Company will provide, in due course, further updates on the acquisition of its investment adviser, GOAL service GmbH, which is currently progressing towards completion in August 2010.
The termination of the IMA is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Jim Mellon who is chairman of Speymill plc, the parent company of SPG), having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.
Director Change
The board of directors of Company ("the Board") announces that the chairman, Raymond Apsey, will be retiring from the Board with immediate effect. The Board would like to thank Mr Apsey for his valuable contribution and guidance since the Company's launch and wish him all the best in his retirement.
Following Mr Apsey's departure, and in light of the eventual internalisation, the Board is currently reviewing the overall structure and composition of the Board, including the appointment of a new chairman and executive members of the Board. The Company will provide further information in this respect as appropriate.
For more information, please visit http://www.speymilldeutsche.com or contact:
| SMP Fund Services Limited | +44 1624 682 216 |
| (Administrator) |
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| Vincent Campbell |
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| Smith & Williamson Corporate Finance Limited | +44 20 7131 4000 |
| (Nominated Adviser) |
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| Azhic Basirov |
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| Siobhan Sergeant |
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| Fairfax I.S. PLC | +44 20 7598 5368 |
| (Brokers) |
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| James King |
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| Gillian McCarthy |
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| Tavistock Communications Limited | +44 20 7920 3150 |
| (Media & Investor Relations) |
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| Jeremy Carey |
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| Simon Hudson |
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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.