SDCC Speymill Deut.C

RNS Number:1363G
Speymill Deutsche Immobilien Co PLC
22 October 2007


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 19 October 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 EUR200.1 million.

- Initial net rental income (as at notarisation) is expected to be approximately
  EUR13.6 million per annum (though 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) is expected to be 6.6%
  (*excluding rental guarantees for certain properties - please see below), and 
  is anticipated to rise to 7.3% 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").

*Rental guarantees are in place during the period of refurbishment and until one
 year following the completion of those refurbishments (refurbishment costs of
 approximately EUR12.3 million are to be borne by the selling entities) for
 approximately EUR78.5 million of the current notarised properties. Taking these
 rental guarantees into account in the overall portfolio figures, the blended 
 net initial yield is expected to be approximately 7.3%, with adjusted initial 
 net rental income (as at notarisation) at a level of approximately EUR15.1 
 million.

The Company has notarised 3,954 apartment block units at an overall average
price of EUR766 per square metre. There were approximately 592 vacant units at
notarisation (circa 15% vacancy). These include units in buildings covered by
the aforementioned initial rental guarantees (most at 95% of maximum rental
income as at notarisation). Thus the adjusted vacancy in terms of rental income
is approximately 4.4%.

Refurbishment related costs of over EUR6.3 million are to be borne by the fund
entities in addition to any costs covered by sellers.

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.

Where the Investment Manager and Investment Advisor feel certain deals in the
market may be overpriced, in light of the tightening of credit markets, they are
holding back in the expectation of obtaining more advantageous prices.

Summary SDCC Portfolio Information

Total Number of Units                                                    3,954

Total Purchase Price                                         EUR 200.1 million

Average Price per m2                                                   EUR 766

Net Rental Income (excluding rental guarantees)               EUR 13.6 million

Net Initial Yield (excluding rental guarantees)                           6.6%

Stabilised Yield                                                          7.3%


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).

22 October 2007

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 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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