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Phoenix German property fund launches new share offer

Investment Europe
Phoenix German property fund launches new share offer - German - property

The CISX listed German residential property fund Phoenix Spree Deutschland has launched a new share offer, looking to raise between £6m and £10m.

The money will be invested over three years in renovating and refurbishing the existing properties. The aim is to improve tenant structures, accelerate rent growth and increasing the net asset value of the fund.

PMM, which is acting as property adviser, says Germany's residential market, especially in its capital, where most of the fund's assets are concentrated, poses an attractive investment proposition.

Matt Northover, partner at PMM, said: "With residential property in Germany still more affordable than in almost any other European country, we believe there is scope for significant rent inflation.

"Over the last two years we have been taking advantage of a buoyant rental market, upgrading apartment units and letting them out for markedly higher rents. This has been a key driver of the positive valuation momentum we have seen in that time.

"We are now looking to raise funds to enable similar significant refurbishment investments in order to drive additional growth in rents."


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