Berlin-focused Phoenix Spree inks €240m loan

Phoenix Spree Deutschland, the UK-listed investment company specialising in Berlin residential real estate, has completed a new €240 mln term loan facility with Natixis Pfandbriefbank.

The loan comprises two tranches, the first for €190 mln and the other for €50 mln, and is intended to improve Phoenix Spree's loan-to-value (LTV), to bring it closer to the company's stated goal in the listing prospectus, the firm said.

The €190 mln tranche covers debts of around €119 mln, with a seven-year, interest-only loan. Following drawdown, the company's LTV increases from 28.6% to 39.2%, while the overall cost of financing decreases from 2.19% to 2.13%. The weighted average financing term remains unchanged at around 7 years.

The remainder of the facility serves to pursue other market opportunities, Phoenix Spree said.

'We are delighted to have formed a new relationship with Natixis and to have secured a new credit facility which provides the Company with more flexible and cost-efficient financing,' said Robert Hingley, chairman of Phoenix Spree Deutschland.

Referring to the Berlin Ministry of Housing's recent proposals to apply a market rent cap, Hingley said that the new loan would 'provide sufficient liquidity in order to take advantage of opportunities that may arise from the current regulatory uncertainty'.

'We are pleased to have been able to support Phoenix Spree Deutschland on the origination of a new €240 mln term loan facility,' said Edward Daubeney, director of JLL's debt advisory EMEA team, which advised on the deal.

'This transaction is indicative that the Berlin real estate market continues to perform strongly and offers attractive opportunities to businesses and investors,' Daubeney added.


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