StockMarketWire.com - Berlin residential property specialist Phoenix Spree Deutschland said it would commence a buyback of its shares, having accelerated sales of condominiums.

The company had announced in September that it would consider buying back up to 10% of its existing share capital, following completion of a new €240m term loan and if its share price weakened.

'This liquidity has been supplemented by the proceeds of condominium sales,' the company said, while noting that its shares were currently trading at a 24% discount to their EPRA net asset value as at 30 June.

Since the end of June, the company said 10 condominium units had been notarised for sale with an aggregate value of €3.8m.

The average achieved value per square metre for those units was €4,685, representing a 21.6% premium to their book value as at 30 June.

Phoenix Spree Deutschland, meanwhile, said it remained firmly of the belief that proposed rent caps in Berlin currently drafted in law 'are not lawful and are unconstitutional'.

'In Germany, residential tenant law is governed by the German Civil Code and is therefore a matter for the federal and not state government,' it said.

'There is considerable and mounting legal opinion supporting this view.'

'The board also notes recent press reports that certain elements of the current Mietendeckel proposals continue to be the subject of discussion within the Berlin Senate.'

'Specifically, the proposal that existing tenants can apply for rent reductions in certain instances is not supported by all parties within the Berlin coalition.'

'The company continues to explore all options within the existing portfolio to optimise strategic flexibility pending clarification of the legality of Mietendeckel rules.'

'As well as condominium sales, these include its new re-letting strategy focused on short term furnished apartments and densification projects.'

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