SDCC Speymill Deut.C

RNS Number:3777L
Speymill Deutsche Immobilien Co PLC
09 January 2008


Speymill Deutsche Immobilien Company plc ("SDIC" or "the Company")

C Share Portfolio Investment Update

Speymill Deutsche Immobilien Company plc (AIM: SDIC; SDCC), the pan-German
residential property investment company listed on AIM, announces further
investments for the second tranche of funds raised ("the C Share Portfolio").

Main highlights as at 31 December 2007 are:

- Residential properties in and around various German cities and towns have been
  notarised (i.e. committed to be purchased) for a cumulative cash consideration
  of approximately EUR373 million. In addition, refurbishment related costs of
  over EUR15.4 million are to be borne by the fund entities.

- Initial net rental income, as at notarisation is expected to be approximately
  EUR25.8 million per annum. Furthermore, this amount will be temporarily
  augmented by initial rental guarantees for vacancies while certain
  refurbishments are being carried out.

- Blended net initial property yield as at notarisation, including refurbishment
  costs, is thus expected to be 6.6%. This yield is anticipated to rise to 7.1% at
  the end of the period commencing 12 months after completion of all acquisitions,
  full takeover of property management and completion of refurbishments
  ("stabilised yield").

In addition, refurbishment costs of approximately EUR17.3 million relating to
approximately EUR132.3 million of the current notarised properties are to be
borne by the sellers. Rental guarantees are in place for one year following the
completion of those refurbishments. Taking these rental guarantees into account,
the adjusted initial net rental income, as at notarisation is approximately
EUR27.9 million.

The Company has notarised 7,248 apartment block units at an overall average
price of EUR797 per square metre.

There were approximately 842 vacant units at notarisation (circa 11.6% vacancy).
These include units in buildings covered by the rental guarantees refered to
above. The economic vacancy rate, adjusted for rental guarantees, is
approximately 4.7%, although this may rise temporarily following notarisation
and during the refurbishment period.

After contract completion and when the properties have been taken over, 
refurbished and are fully under management for a suitable period, the Company 
will target a 95% overall occupancy rate (allowing for some natural vacancy and 
tenant fluctuation). It is envisaged that this target will be reached in the 
second year after takeover.

Summary C Share Portfolio Information

Total Number of Units                  7,248

Total Purchase Price               EUR 373.4 million

Average Price per m2               EUR 797

Net Rental Income                  EUR 25.8 million
(excluding rental guarantees)

Net Initial Yield                      6.6%
(excluding rental guarantees)

Stabilised Yield                       7.1%

Note:

The stabilised (normalised) rent represents a target income level based on a 95%
of maximum rents. If not already achieved, it is envisaged that this will be 
reached in the second year after takeover.

In the few months to one year after assuming full ownership and management, the 
rental income level may temporarily fall from the level at notarisation for the 
following reasons:

- the buildings may be subject to some refurbishment which can lead to increased
  tenant turnover;

- during the handover period between notarisation and completion, the incumbent 
  owner may be less active in managing the property and, consequently, there may
  be additional vacancies that will need to be replaced through letting activity
  following completion; or

- the building's operating/service charge costs may have to be subsidised out of
  rental income before a reconciliation with tenants occurs (this typically 
  occurs in the year following takeover).

Ordinary Share Portfolio

The Company also announces that it completed contracts for the last of the 
Ordinary Share Portfolio acquisitions in November 2007. With the refurbishment 
program now underway, as anticipated, the Company has observed an increase in 
vacancy rates since the posting of Company accounts, to approximately 12% before
rental guarantees.  Following the completion of refurbishments and letting 
activity, the vacancy rate is expected to decrease.

9 January 2008

Contact:

Smith & Williamson Corporate Finance Limited                +44 (0)20 7131 4000
Azhic Basirov / Siobhan Sergeant

Fairfax I.S. PLC                                            +44 (0)20 7598 5368
Paul Richards / James King


Notes to editors:

- Speymill Deutsche Immobilien Company plc is a pan-German residential property
  investment company which listed on AIM on March 2006, raising �170 million on
  admission.

- In May 2007, the Company raised a further EUR250 million through a placing of 
  C Shares which were admitted to trading on AIM on 10 May 2007.

- The Company was established to invest in the German property market and, 
  predominantly, in the residential sector. It is anticipated that once fully 
  invested, the Company will have a balanced portfolio of properties throughout 
  Germany.

- The Company's objective is to provide Shareholders with an attractive level of
  income together with the prospect for long-term capital growth.

- The Manager is Speymill Property Group Limited (formerly named Speymill 
  Property Managers Limited) and the Investment Adviser is GOAL Service GmbH. 
  The Manager and Investment Adviser are responsible for identifying new 
  investment opportunities.

- The Manager is a subsidiary of Speymill Group plc (AIM: SYG) while the 
  Investment Adviser is a joint venture partner of Speymill Group plc (which 
  owns  51% of the venture).


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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