Last checked at 22 Feb 2010 07:00
22 February 2010
Speymill Deutsche Immobilien Company plc
("SDIC" or "the Company")
Bank Facilities
Following the announcement made by the Company on 4 February 2010, the directors of SDIC have been monitoring the Company's continued compliance with its banking covenants and are now of the view that, while the Company is currently compliant with all existing terms and covenants of its banking facilities, in the absence of new measures and in light of a revised calculation methodology requested by the lending banks, one of the banking covenants in one of the Group's facilities will likely be breached in the near term. This breach relates solely to an amortisation related covenant on one of the Group's six facilities. This facility involves a loan of (€353 million) out of Group loans totalling (€1.18 billion).
Two directors of the Company, together with the Manager and Adviser, recently met with representatives of its lenders to continue discussions on the banking facilities currently available to SDIC and the measures which may be agreed with SDIC's banks in order to remedy any covenant breach, should that occur.
A further update on these continuing negotiations will be provided at the time of the announcement of the half year results for the period ended 31 December 2009 (due to be released in the second half of March 2010) or earlier, if appropriate.
For more information, please visit http://www.speymilldeutsche.com or contact:
| Speymill Property Group Limited | +44 1624 640 860 |
| (Manager) | |
| Nigel Caine | |
| Nick Harris | |
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| SMP Fund Services Limited | +44 1624 682 216 |
| (Administrator) | |
| Vincent Campbell | |
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| Smith & Williamson Corporate Finance Limited | +44 20 7131 4000 |
| (Nominated Adviser) | |
| Azhic Basirov | |
| Siobhan Sergeant | |
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| Fairfax I.S. PLC | +44 20 7598 5368 |
| (Brokers) | |
| James King | |
| Andrew Cox | |
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| Tavistock Communications Limited | +44 20 7920 3150 |
| (Media & Investor Relations) | |
| 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. In May 2007, SDIC raised a further €250 million through a C share placing. 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 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 of SDIC and, in conjunction with the Investment Adviser, Goal service GmbH, it identifies acquisition opportunities for the Company, which fit within its investment criteria.