Peach Property Group purchases site in Regensdorf near Zurich, expands its property portfolio and plans to construct apartments
- GRETAG AG including properties acquired in Regensdorf near Zurich
- Two office buildings sold to investment vehicles of Credit Suisse
- Additional target rental income of CHF 3.2 million
- Land available for development to be used for the construction of additional investment properties
- Stabilisation of current income and strengthening of the Group’s presence in Switzerland
Zurich, 12 September 2013 – Peach Property Group AG, a leading property investor and developer of high-quality residential real estate in the German-speaking region of Europe, today announced that it has acquired 100 percent of the shares in GRETAG AG, a pure-play property company that owns several commercial properties on a 48,000 m² site in Regensdorf near Zurich. The site’s proximity to the train station enables Zurich main station to be reached by suburban railway within 15 minutes. By 2015, the current 30-minute interval between trains to Zurich will be reduced to 15 minutes.
Today, the site hosts several commercial properties (education, offices, restaurants, logistics, manufacturing) that are let at good rents, and there is also additional space available for utilisation.
In connection with the acquisition of GRETAG, Peach Property Group sold two office buildings to investment vehicles of Credit Suisse: One property is the registered seat of Fernfachhochschule Schweiz (FFHS), a distance education institution, which was taken over by a property investment fund of Credit Suisse. The other property is a multi-tenant building serving as the headquarters of SAP (Schweiz) AG, which was sold to an investment group of Credit Suisse Anlagestiftung.
Peach Property Group will integrate all other properties on this site into its property portfolio. The annual target rent currently is CHF 3.2 million. Given a vacancy rate of around 30 percent, the actual rent currently is around CHF 2.3 million. By repositioning the entire site in the market and partially renovating its existing buildings, Peach Property Group intends to further boost its rental income and achieve an attractive increase in value. In addition, Peach Property Group plans to use a space of 18,000 m², which currently serves as a parking lot, to build attractive, highly developed rental apartments in the mid-price segment. The potential gross floor area is around 40,000 m², which corresponds to usable rental space of around 30,000 m². The plans are to be implemented in stages over the next five years.
Renzo Fagetti, Managing Director Switzerland for Peach Property Group AG, comments: “With its high-quality development of this site in close proximity to the train station, Peach Property Group will create attractive living space within the Greater Zurich Area. In close collaboration with the town of Regensdorf and as part of the ongoing planning activities for the area north of the train station, Peach Property Group also makes a clear statement with regard to the sustainable ‘Parkway’ urban development strategy and its mix of residential, leisure and commercial uses.”
Thomas Wolfensberger, CEO of Peach Property Group AG, states: “Peach has been working hard on this transaction in recent months: The plot was subdivided successfully, two long-term leases were signed with the two anchor tenants of the office buildings sold, plans for the construction of rental units were initiated – all of which has created the foundation for what we want to achieve in Regensdorf in the next years. The acquisition further enhances our investment portfolio in line with our strategy and strengthens our presence in Switzerland. In addition, we are securing a further potential for the construction of new investment properties at a very good location.
Contacts
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 (0) 44 485 50 00 | investors@peachproperty.com
Contact Credit Suisse AG:
Caroline Stössel, Kommunikation Real Estate Asset Management
+41 (0) 44 332 58 95 | caroline.stoessel@credit-suisse.com
Media Germany:
edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de
About Peach Property Group
Peach Property Group AG one of the leading developers in the field of top-quality residential property in the German-speaking region of Europe. Its activities cover the entire prime property development value chain, from site evaluation to project planning, implementation and marketing. Peach Property Group focuses on city and holiday residences in exceptional locations and featuring highest-quality fittings for a discerning clientele. The company’s integrated corporate strategy encompasses not only the development of exclusive residential properties, but also the management of investment properties for the purpose of generating consistent annual revenues.
Peach Property Group AG is headquartered in Zurich and also has a branch office in Cologne. The company’s shares are listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for more information.