Condominium sales and business update

6 November 2024

Phoenix Spree Deutschland Limited
(the "Company" or "PSD")

Business update

UPDATE ON CONDOMINIUM SALES, APPOINTMENT OF CONDOMINIUM BROKERS AND AGREEMENT WITH TERMIOS.

Phoenix Spree Deutschland (LSE: PSDL.LN), the specialist investor in Berlin residential real estate, provides an update on condominium sales, including progress on its proposed accelerated condominium sales strategy and plans to test and install heating optimisation systems for PRS buildings.

Condominium sales momentum continues

As previously announced, condominium sales during first half of the financial year showed a marked improvement, with fifteen units notarised for sale for an aggregate value of €5.3 million in H1 2024. Positive momentum has continued and, since the half-year end, a further ten units, with a combined value of €4.0 million have been either notarised or reserved for sale. Sales in the second half include the highest value apartment sold by PSD, a newly constructed attic apartment which was sold in a bare shell condition for €950,000 or €4,720 per sqm.

Year-to-date, condominiums have been notarised at an average price of €4,122 per sqm. This represents a 19 per cent premium to the H1 2024 JLL Portfolio valuation and a 52 per cent premium to the Portfolio value per sqm implied by the share price as at 5 November 2024. Vacant condominiums have been notarised at an average premium of 31 per cent to the H1 2024 Portfolio valuation and a 68 per cent premium to the Portfolio value implied by the share price as at 5 November 2024.

Appointment of two leading condominium sales brokers

Plans to significantly increase the number of condominiums that can be made available for sale in the future are nearing completion. The Company is pleased to announce that it has concluded negotiations with two leading condominium sales platforms Engel & Völkers and Lübke Kelber to work alongside QSix's existing sales platform, IWA. These platforms will significantly broaden market reach, including internationally, of PSD's existing condominium sales and marketing activities.

Framework agreement reached to test and install heating optimisation systems

The Company has entered into a framework agreement with termios.Pro ("termios"), a leading provider of green solutions for heating, sustainability and ESG for residential properties, to test and supply heating optimisation systems. Termios is a part owned by LEG Immobilien SE and, under the terms of the framework agreement, a pilot will be established. If the testing phase is successful, the Company will consider entering a formal contractional agreement, with roll-out across a substantial part of the PRS portfolio thereafter.

The termios system operates by utilising smart thermostats which, once installed, automatically regulate the hydraulic balancing of the heating system for individual radiators within units and enable intelligent control of heating energy through further smart energy saving features. Initial tests previously undertaken by termios in similar Altbau buildings have indicated that energy savings of up to 20 per cent in total may be achievable.

Energy focused capex is expected to increase property values, reduce operational costs and potentially lead to more favourable long-term financing options. By enhancing the energy efficiency of buildings, the Company expects to broaden the pool of prospective buyers, including pension funds and insurance companies, as market conditions improve.

Portfolio sale negotiations at an advanced stage

The Company has previously announced that it is in advanced negotiations to sell a portfolio of 16 buildings rented on a PRS basis. Further details on the terms of this transaction will be announced as and when it becomes unconditional.

For further information, please contact:                                          

Lizzie Snow / Annushka Shivnani

Notes to Editors:

About Phoenix Spree Deutschland

Founded in 2007 and listed on the London Stock Exchange in 2015, Phoenix Spree is a long-term investor in Berlin's residential, mid-market rental property. QSix Residential Limited acts as our Property Advisor, carrying out the day-to-day operations of the Company. It has an experienced team of property professionals with long-standing experience of the German residential property market.

About termios

Termios is a joint venture founded in 2023 by the Munich-based business builder mantro GmbH, the Sauerland family-owned fittings manufacturer Oventrop and the Düsseldorf-based LEG Immobilien SE. The company specialises in the development of green solutions for heating, sustainability and ESG for residential properties. It provides efficient energy optimization for residential buildings through heating control and hydraulics as well as digitization and technology services.