REG - Phoenix SpreeDeutsch - 2025 Condominium sales exceed expectations

Phoenix Spree DeutschlandAnnouncement

Wed 07:00

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RNS Number : 8775N  Phoenix Spree Deutschland Limited  07 January 2026

7 January 2026

Phoenix Spree Deutschland Limited

(the "Company" or "PSD")

2025 Condominium sales exceed expectations

Phoenix Spree Deutschland Limited is pleased to announce that condominium
sales for the financial year ended 31 December 2025 materially exceeded the
Company's target, with December delivering a record month. The Company intends
to return capital to shareholders, starting in 2026, through a programme of
compulsory pro-rata redemptions of Ordinary Shares.

Condominium sales outperform expectations

The Company exceeded its 2025 condominium sales target of €30m. Average
sales prices per sqm were above balance sheet carrying values, underscoring
continued market resilience:

·      Record sales momentum: In 2025, the Company notarised 122 units
for €36.0m (2024: €9.4m), exceeding its €30m target by 20%. December set
a new monthly record with €5.4m of notarisations.

·      Additional pipeline: A further 28 units (aggregate value €7.8m)
are reserved and pending notarisation.

·      Resilient pricing: The average notarised price was €4,132 per
sqm, representing an average 3.8% premium to latest carrying values.

·      Vacant vs. occupied: Vacant units achieved €4,576 per sqm
(19.0% premium to latest carrying values), while occupied units achieved
€3,913 per sqm (3.2% discount to latest carrying values).

·      2026 outlook: The Company remains confident of achieving 2026
notarisations of at least €55m, supported by the addition of further
properties into the condominium sales pool.

Table: 2025 condominium notarisations and reservations

 

 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 November                         3      0.76                  4,460                22.2%                                             19.5%
 Notarised December                         8      3.01                  4,351                15.6%                                             10.1%
 Total vacant notarisations                 41     13.17                 4,576                25.6%                                             19.0%

 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 November                         5      1.26                  4,185                14.7%                                             2.7%
 Notarised December                         5      2.38                  4,470                27.1%                                             1.0%
 Total occupied notarisations               81     22.79                 3,913                6.9%                                              -3.2%

 Total notarisations (vacant and occupied)  122    35.95                 4,132                13.0%                                             3.8%
 Total outstanding reservations             28     7.83                  4,228                18.5%                                             7.6%
 Total reservations and notarisations       150    43.78                 4,149                13.9%                                             4.7%

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.

Further expansion of the condominium sales pipeline in 2026

Following the Company's full debt refinancing, announced on 28 November 2025,
the Company expects to add additional properties into the Condominium Sales
Pool. After completing the required capital expenditure to maximise sale
proceeds, this additional tranche is expected to be added in H1 2026, with
capacity to add further properties thereafter.

To support the enlarged pipeline, the Company has broadened its coverage by
expanding its panel to five brokers. This wider distribution capability,
together with units added in H2 2025 and further additions planned in 2026, is
expected to underpin continued sales velocity in the current year.

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 provided by the debt
refinancing, the Company will return capital to shareholders through a
programme of compulsory pro rata redemptions of Ordinary Shares.

The Company expects that the proceeds from condominium sales will be returned
to shareholders twice yearly, subject to available cash, market conditions and
covenant headroom.

The Company intends that returns to shareholders will be made on a net
proceeds basis (rather than gross). Net proceeds reflect the cash available
for distribution after deductions associated with executing sales and managing
the wind-down, including:

1.     Broker sales fees and other disposal-related costs

2.     Repayment of debt

3.     Any crystallised tax charges arising from disposals

Accordingly, the cash returned to shareholders is expected to align more
closely with an IFRS-based measure of equity (which reflects realised cash
movements and liabilities as they arise) than with EPRA measures, which align
with a long-term hold scenario and may exclude certain items that are not
expected to crystallise if assets were retained indefinitely.

Redemption pricing and timetable

The Company will provide further information on the first redemption alongside
its full year Results on 23 April 2026. Further information on how a
compulsory pro rata redemption works is set out in the Appendix to this
announcement. No action is required from shareholders at this time.

Portfolio Valuation

The Company expects to announce the valuation of its investment property
portfolio (Condominium and PRS) as at 31 December 2025 on 6 February 2026.

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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