SDCC Speymill Deut.C

RNS Number:2444R
Speymill Deutsche Immobilien Co PLC
01 April 2008

1 April 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 March 2008 are:

- Residential properties in and around various German cities and towns have been
either notarised (i.e. committed to be purchased) or internally allocated (*see
note below) for a cumulative cash consideration of approximately EUR589.6
million. In addition, refurbishment related costs of over EUR24.1 million are to
be borne by the fund entities.

- Initial net rental income as at notarisation is expected to be approximately
EUR.40.8 million per annum. 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, based on purchase price
and excluding rental guarantees but including refurbishment costs, is expected
to be 6.65%. This yield is anticipated to rise to 6.9% 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 EUR18.0 million relating to
approximately EUR142.4 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
EUR42.5 million per annum.

The Company has in aggregate notarised or internally allocated* 10,686 apartment
block units at an overall average price of EUR842 per square metre.

There were approximately 995 vacant units at notarisation (approximately 9.3%
total vacancy). These include units in buildings covered by the rental
guarantees refered to above. The economic vacancy rate, adjusted for rental
guarantees, is approximately 4.6%, although this may rise temporarily following
notarisation and during the refurbishment period as detailed below.

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                                        10,686
Total Purchase Price                                         EUR 589.6 million
Average Price per m2                                         EUR 842
Net Rental Income (excluding rental guarantees)              EUR 40.8 million
Net Initial Yield (excluding rental guarantees)              6.65%
Stabilised Yield                                             6.9%

Note:

The stabilised (normalised) rent represents a target income level based on a 95%
occupancy. 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).

*Berlin assets which were originally purchased with funds from the Ordinary
Share Portfolio have been internally reallocated to the C Share Portfolio in an
accounting exercise for a consideration of EUR18.29 million plus EUR63.10
million debt. This follows the production of a valuation report by DTZ which
valued the assets at EUR81.39 million. The net amount payable will be internally
transferred to the Ordinary Share bank account and the recognised uplift for the
Ordinary Share Portfolio is EUR10.25 million.  The annual net rental income
currently earned by these properties is approximately EUR4.8 million and, taking
into account initial rental guarantee adjustments, the adjusted overall net
initial rental yield for the C Share Portfolio is approximately 7%.
Transactional costs, estimated to be in the region of EUR8.7 million, will be
saved by the C Share Portfolio.  The consideration will be paid using existing
cash resources of the C Share Portfolio and will improve the liquidity of the
Ordinary Share Portfolio. The net cash effect on the Company overall is nil.

For more information, please visit www.sdic.co.im or contact:

Speymill Property Group (Manager)                               
Floris van Dijkum, Global Chief Investment Officer              +44 20 7659 0763
Paul Smith, CFO Funds                                            +44 1624 640864

Smith & Williamson Corporate Finance Limited (Nomad)            +44 20 7131 4000
Azhic Basirov
Joanne du Plessis

Fairfax I.S. PLC (Brokers)                                      +44 20 7598 5368
James King

Tavistock Communications                                        +44 20 7920 3150
Jeremy Carey
Simon Hudson
Gemma Bradley

Notes to editors:

Speymill Deutsche Immobilien Company plc is a pan-German residential property
investment company, which listed on the AIM market of the London Stock Exchange
in March 2006, raising �170 million (EPIC: SDIC.L). In May 2007, SDIC raised a
further Euro250 million through a C share placing (EPIC: SDCC.L). The Euro
denominated fund aims to provide investors with an attractive level of income
together with the prospect for long-term capital growth.

The German residential market is viewed as increasingly attractive to investors
due to a number of factors including rising German economic activity and
productivity, and the availability of assets at below replacement cost. Acquired
properties should, through active management, also have the potential for
increased rental rates and accordingly improved capital values and increased
yield.

Speymill Property Group Limited is the appointed Manager to SDIC and, in
conjunction with the Investment Advisor, Goal Service GmbH, it identifies
acquisition opportunities for the Company, which fit within its investment
criteria.






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

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