Phoenix Spree Deutschland’s property portfolio was valued by Jones Lang LaSalle GmbH as at 31 December 2015, at €282.8m, up from €245.3m the year before. This represents an increase of 15.3% over the twelve-month period. This increase in valuation reflects yield movement and adjustments due to improved property condition; rental income increases; decreasing vacancy; market rent adjustments; and the net impact of acquisitions and disposals (€12m).
On a like-for-like basis, the portfolio valuation increased by 10.6% in the twelve months ended 31 December 2015. This compares to like-for-like growth of 5.3% for the six months ended 30 June 2015.
They say all geographical markets registered valuation gains during the period, with Nürnberg & Fürth seeing the largest like-for-like increase at 14.7%, followed by Berlin (12.2%), Central & North (6.0%) and Baden-Württemberg (1.0%). The like-for-like increases highlight the strength of the German residential market in Berlin and secondary cities. In particular, prices of traditional “Altbau” properties within the Berlin S-Bahn ring and in Nürnberg & Fürth continue to attract investor interest and benefit from strong market fundamentals.
The valuation represents a value per square metre of €1,635 (31 December 2014 €1,447) and a gross initial rental yield of 5.7% (6.1%).
Phoenix Spree Deutschland expects to report its results for the twelve-month period ended 31 December 2015 during April 2016.
PSDL : Phoenix Spree reports valuation uplift