SDCC Speymill Deut.C

RNS Number:8739Z
Speymill Deutsche Immobilien Co PLC
09 July 2007



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

First Investments re the C Share Portfolio

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

Main highlights as at 30 June 2007 are:

- Residential properties in and around various German cities and towns notarised
  (i.e. committed to be purchased) for a cumulative cash consideration of
  approximately EUR50.9 million.

- Expected initial net rental income (as at notarisation) of approximately
  EUR2.8 million per annum (though this will effectively rise due to some 
  initial rental guarantees for vacancies during some refurbishments).

- Blended net initial property yield (as at notarisation) of 5.6%, anticipated
  to rise to 7.7% at the end of the period commencing 12 months after fully
  completed investments, property management takeover and completion of
  refurbishments.

Approximately EUR39.6 million of the current notarised properties have a lower
initial yield due to vacancies and a planned refurbishment schedule. However,
rental guarantees will be put in place for these properties from completion of
the investments lasting until 12 months from completion of the refurbishment
work on each building, respectively. As a result, these properties are expected
to deliver annual rental income of almost EUR3.1 million from the outset,
equating to a net initial property yield of approximately 7.7%.

The Company has notarised apartment blocks containing 1,086 units at an overall
average price of EUR731 per square metre. There were approximately 322 vacant
units at notarisation (circa 29.6% vacancy including some 315 units covered by
initial rental guarantees and scheduled to be refurbished or redecorated prior
to letting).

Refurbishment related costs of over EUR427,000 are to be borne by the fund 
entities and over EUR8 million is to be covered by the selling entities for 
those properties currently notarised.

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.

9 July 2007

Contact:

Smith & Williamson Corporate Finance Limited                +44 (0)20 7131 4000

Azhic Basirov / Siobhan Sergeant


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 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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