REG - Phoenix SpreeDeutsch - Debt refinancing, condo sales and capital return
28/11/2025 07:00
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RNS Number : 3463J Phoenix Spree Deutschland Limited 28 November 2025
28 November 2025
Phoenix Spree Deutschland Limited
(the "Company" or "PSD")
Debt refinancing completed, condominium sales ahead of target and planned
capital return
Phoenix Spree Deutschland Limited is pleased to announce the completion of a
comprehensive refinancing of all the Company's debt facilities. This is a
significant milestone that supports the Company's orderly wind-down and
managed realisation strategy.
With refinancing complete and momentum in the condominium sales programme
continuing, the Board intends to return capital to shareholders through a
programme of compulsory pro rata redemptions of Ordinary Shares, starting in
2026.
Highlights
· Refinancing completed on 26 November 2025, materially improving
financial and operational flexibility.
· New €255.0m, five-year, interest-only, term loan at 210 bps
over 3‑month Euribor.
· Restrictions on condominium sales and distributions to
shareholders lifted, enabling increased volume of condominium sales and
shareholder distributions alongside debt repayment.
· With year-to-date condominium notarisations currently at
€30.2m, the Company has now exceeded its target of €30m for 2025.
· The Company intends to return capital to shareholders through a
compulsory pro rata share redemption programme, starting in 2026.
· Further details of the first share redemption will be announced
with the Annual Results on 23 April 2026.
Refinancing of all debt completed
The Company has completed a comprehensive refinancing of all its existing
borrowings. Facilitated by Natixis Pfandbriefbank AG, this refinancing has
been executed ahead of the September 2026 maturity of PSD's previous debt
facilities and provides a stable, flexible capital structure to support the
Company's orderly wind‑down and managed realisation strategy. The key terms
of the new facility are:
· Sales flexibility: Removal of the previous cap on the number of
properties that can be sold as condominiums at any one time.
· Distributions to shareholders permitted: Removal of the prior
block on distributions, enabling distributions to shareholders while debt is
being progressively repaid (i.e. returning capital to shareholders is no
longer contingent on full debt repayment).
· Facility size and tenor: Single drawdown of €255.0m,
interest‑only, five-year term with early prepayment flexibility.
· Pricing: 210 bps over 3‑month Euribor.
· Hedging: Interest on not less than 80% of the outstanding debt
balance to be hedged. The Company intends to use the value of existing Natixis
interest rate swaps to partially offset the cost of acquiring a new interest
rate cap.
· Mandatory prepayments: 52% of net condominium sale proceeds (net
of taxes and sales costs) to be applied to prepay the facility.
After repaying existing debt of Euro €233mm and facilitating new hedging,
the Company plans to apply the balance of the facility to preparatory capital
expenditure for condominium sales projects and maintenance of an appropriate
liquidity buffer.
Condominium sales update
The Company has now exceeded its full-year 2025 condominium sales target of
€30m. Average sales values per sqm remain above latest balance sheet
carrying values, underscoring resilience in the condominium market.
· Sales momentum: Total year-to-date condominium notarisations of
107 units with an aggregate sales value of €30.2m.
· Pricing resilient: Average notarised price of €4,077 per sqm,
representing an 11.9% premium to the average value of the entire Portfolio of
properties on the Company's balance sheet as at 30 June 2025 and a 3.4%
premium to the latest carry values of the buildings from which the units were
sold.
· Vacant vs occupied mix: Vacant units continue to command
materially higher prices, achieving an average sales price of €4,644 per
sqm, a 21.1% premium to latest balance sheet carrying values compared to
occupied units which achieved €3,845 per sqm, a 3.8% discount to latest
balance sheet carrying values.
· Additional pipeline: A further 24 units with an aggregate value
of €7.6m are currently reserved and pending notarisation.
· Sales targets: The Company remains confident of achieving 2026
notarisations in excess of €55m.
Table: Condominium notarisations and reservations (2025 to date)
Notarisation period / status Units Sales Value (€m) Price per sqm (€) Premium / discount to Portfolio carry value(1,2) Premium / discount to asset carry value(1,3)
Vacant notarisations
Notarised January 0 0 0 0 -
Notarised February 4 1.45 5,293 45.8% 23.2%
Notarised March 2 0.72 5,987 64.9% 32.1%
Notarised April 4 1.06 4,402 21.3% 20.6%
Notarised May 1 0.35 4,031 11.1% 25.1%
Notarised June 5 1.40 5,253 44.7% 20.9%
Notarised July 2 0.59 4,885 33.8% 8.3%
Notarised August 1 0.30 4,076 11.7% 25.0%
Notarised September 7 2.00 3,827 4.9% 12.9%
Notarised October 4 1.53 4,920 34.8% 29.8%
Notarised to 26 November 2 0.58 4,353 19.3% 23.4%
Total vacant notarisations 32 9.98 4,644 27.6% 21.1%
Occupied notarisations
Notarised January 4 0.82 2,987 -17.7% -24.5%
Notarised February 4 1.08 4,055 11.7% 0.5%
Notarised March 9 2.36 3,476 -4.2% -4.4%
Notarised April 7 1.81 3,840 5.8% -11.7%
Notarised May 3 1.05 4,323 19.1% -0.3%
Notarised June 8 2.48 3,626 -0.1% -8.4%
Notarised July 6 1.84 3,772 3.4% -1.4%
Notarised August 14 3.29 3,960 6.3% 1.3%
Notarised September 7 1.89 4,163 14.1% 2.6%
Notarised October 9 2.51 4,181 14.5% 0.1%
Notarised to 26 November 4 1.11 4,070 11.5% 1.5%
Total occupied notarisations 75 20.23 3,845 5.3% -3.8%
Total notarisations (vacant and occupied) 107 30.20 4,077 11.9% 3.4%
Total outstanding reservations 24 7.60 4,324 18.5% 7.6%
Total reservations and notarisations 131 37.80 4,124 13.2% 4.3%
1. Carry value is determined using the most recent JLL
valuation per sqm. For notarisations completed before June 30, 2025, the
applicable valuation is from December 2024. For notarisations occurring after
June 30, 2025, the carrying value will be based on the JLL valuation as of
June 30, 2025.
2. The Portfolio carry value is the average valuation per sqm
across all assets within the Company's Portfolio.
3. The asset carry value refers to the JLL valuation of the
specific properties associated with units being notarised during the period.
Expansion of Condominium Sales Pool
Following the refinancing, the Company plans to move further legally-divided
properties into the Condominium Sales Pool. After the necessary preparatory
work, a tranche of 11 properties (341 units) is scheduled for addition in
2026, with scope for more properties to follow.
Sales Momentum
To handle the larger inventory, the broker panel has recently been increased
from three to five. This broader distribution network, together with the new
units transferred to the pool in H2 2025 and 2026, is expected to keep
transaction volumes strong throughout the period.
Capital Expenditure
Capital expenditure for 2025, primarily allocated for condominium preparation,
remains on track at approximately €15m, with materially lower spend expected
in 2026.
Return of capital through share redemption programme
In line with the managed realisation strategy approved by shareholders on 12
March 2025 and supported by the enhanced flexibility from the refinancing, the
Board intends to return capital to shareholders by means of a programme of
compulsory pro rata redemptions of Ordinary Shares.
Subject to available cash, market conditions and covenant headroom, the
Company intends to make regular distributions through pro rata redemptions as
disposals complete.
In order to preserve consistency and comparability of accounting numbers, it
is expected that all redemptions will be at the sterling equivalent of most
recently published EPRA NTA per share (€3.49 as at 30 June 2025).
Further details on the expected size and terms of the first redemption,
including the relevant percentage, pricing reference and timetable, will be
announced alongside the Company's Full Year Results on 23 April 2026.
The Board remains committed to returning surplus cash in a timely and
equitable manner while safeguarding value through disciplined execution of the
wind‑down, continued sales, tenant engagement and cost control.
Further information on how a compulsory pro rata redemption works is set out
in the Appendix to this announcement.
Robert Hingley, Chair of Phoenix Spree Deutschland, commented:
"We have exceeded our 2025 condominium sales target ahead of schedule and at a
premium to latest balance sheet carrying values. Our successful refinancing,
together with strong progress in condominium sales, gives us confidence in
delivering on our strategy of realising assets and returning capital to
shareholders."
For further information please contact:
Phoenix Spree Deutschland Limited +44 (0)20 3937 8760
Stuart Young
Deutsche Bank AG (Corporate Broker) +44 (0) 20 7260 1263
Hugh Jonathan
Teneo (Financial PR) +44 (0)20 7353 4200
Robert Yates, Elizabeth Snow
APPENDIX
Share Redemptions
What is a "compulsory pro rata redemption?" The Company will redeem and cancel
the same fixed percentage of shares held by every shareholder and pay cash for
those cancelled shares. No action is required and all shareholders are treated
equally.
Why is this good for shareholders? Shareholders receive payment by means of a
capital repayment. As shares are redeemed pro rata to existing holdings, each
shareholder's percentage holding remains unchanged.
When will I know the details? We will announce more information on the size,
price and timetable of the first redemption alongside our Full Year Results in
April 2026.
Do I need to do anything now? No.
Where will the cash come from? From ongoing condominium sales and available
cash resources, supported by our new refinancing facility.
How will I get my money? If you hold shares electronically (CREST), proceeds
will be paid through CREST. If you hold paper certificates, you will receive
payment by cheque or bank transfer. The April 2026 announcement will confirm
exact mechanics and timing.
Will everyone be treated the same? Yes.
What happens to my remaining shares? Your remaining shares continue to trade
as normal.
What are the tax implications? Tax outcomes depend on individual circumstances
and jurisdiction. Please seek independent professional advice.
Important Notices
This announcement contains inside information for the purposes of the UK
Market Abuse Regulation. Upon publication, this information is considered to
be in the public domain.
Notes to Editors
Phoenix Spree Deutschland Limited is a closed‑ended investment company
incorporated in Jersey and admitted to the premium segment of the Official
List and to trading on the Main Market of the London Stock Exchange.
On 12 March 2025, shareholders approved a strategy for an orderly
wind‑down and managed realisation of the Company's Portfolio, with a view to
returning cash to shareholders over time.
On 18 June 2025, shareholders approved the introduction of a compulsory share
redemption mechanism to support delivery of this strategy.
ENDS
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