3rd June 2008
Develica Deutschland trading update
Develica Deutschland Ltd, the German commercial property company, believes it has outperformed the market following the 31 March 2008 independent valuation by CB Richard Ellis, which shows its property portfolio values have eased by under 2.5%. Develica believes this to be considerably less than market expectations.
While German property yields have softened since the end of 2007, Develica’s current well balanced portfolio, comprising a mixture of modern offices, retail and logistics properties let to a range of major international and national tenants on predominantly good index-linked leases, continues to perform well.
Over the 12 months to 31 March 2008 Develica acquired a total of €334.2m of commercial property and its portfolio, standing at just over €1bn, now generates an annualised rent roll in excess of €70m.
The Company is concentrating its efforts on the asset management of its portfolio which may include sales of certain properties that no longer meet Develica’s investment criteria.
The Board of Develica will comment in greater detail when the Company’s results for the 12 months to 31 March 2008 are published.