Regional weightings by value

The company has successfully implemented its strategy of creating a pure-play Berlin portfolio. When Phoenix Spree listed on the main market of the London Stock Exchange in June 2015, 63% of the assets by value were located in Berlin. Since then, the Company has been transitioning the geographic focus of assets to create a larger, more focussed Berlin portfolio offering greater economies of scale. This has involved a process of carefully selected Berlin acquisitions, combined with the disposal of non-Berlin assets.

A more focused portfolio

We have made significant progress in our strategy to focus the portfolio on Berlin, having disposed of a series of non-Berlin assets at a premium to book value. The proceeds from these disposals have been used to invest in the current portfolio and to fund further acquisitions in Berlin. During the first half of 2018, the disposal of the Central and Northern Germany portfolio was completed, whereupon Phoenix Spree effectively became a pure-play Berlin fund, creating greater economies of scale.

The Board is of the view that the Berlin market remains attractive with scope to continue the strategy of investing in the existing portfolio and to grow it further through the selective acquisition of residential assets. Although the competition for assets is intense, the expertise and strong local relationships of our Property Advisor have enabled the Company to identify a pipeline of attractive acquisition opportunities.