Taliesin Property Fund’s net asset value rose by 19.4% in 2014 (18.2% on an EPRA basis). The property portfolio was valued at an average of €1,760 per square metre at the end of the year, up 15% on the valuation at the end of 2013.
The shares have been trading at a premium to asset value for some time, currently this is 32%. The Board say this is justified because of the transaction costs and taxes associated with acquiring property in Germany, the lack of suitable property to buy at an equivalent valuation and the potential value of the property if the flats can be sold off individually. As an example of this they point to Taliesin’s first potential privatisation project, Warschauer Strasse, which is taking sales reservations at prices of between €3,200 psqm and €5,000 psqm. They also say though that they have spent about €1,700 psqm doing up these flats prior to putting them on the market.
Taliesin say rents on the more seasoned part of their Berlin portfolio grew by 4% to €7.18 psqm in the year and by close to 9% for the more recently acquired properties to €6.43 psqm.
Taliesin say they hope to take advantage of low interest rates to refinance their debt. They have €50m maturing over the next two years.
TPF : Taliesin says privatisation programme justifies its premium