Peach Property Group buys portfolio properties in Munster, Germany, for around EUR 9 million (CHF 10.8 Mio)
Peach Property Group (Deutschland) GmbH acquires portfolio properties in Munster, in Luneburg Heath, Germany, offering 26,000 square metres of apartment floor space
Annual rental income of around EUR 1.2 million (CHF 1.4 Mio)
Zurich, Cologne and Hamburg, 12 July 2011 – Peach Property Group Ltd, a leading developer of top-quality residential properties in German-speaking Europe, is acquiring a portfolio of 376 residential units with floor space totalling 26,000 square metres. The vendor is Frankfurt-based Alpha Real Estate GmbH.
The properties are located in Munster, a small town around 80 kilometres south of Hamburg. This places them in the catchment areas of two major cities: Hamburg and Hanover. In return for a purchase price of around EUR 9 million (CHF 10.8 Mio), the annual rental income will stand at around EUR 1.2 million (CHF 1.4 Mio)
CEO Thomas Wolfensberger comments: “This acquisition marks a milestone in the implementation of our corporate strategy. That is to complement our project developments in the premier-quality residential segment with portfolio properties yielding good returns. Acquiring this new portfolio in Munster will procure us a sustainable rental income on advantageous terms, with an annual return of around 13% in the form of rent.”
Peach Property Group had already announced at its annual press conference, on 6 April 2011, that it did not intend the development of high-quality residential property to be its only interest. In fact the Group was seeking to build up a portfolio of properties to provide a permanent source of annual income. Partly for this purpose, on 6 July 2011, Peach Property Group issued a bond of up to EUR 50 million (CHF 60 Mio) with a 6.6% coupon and a five-year term.
Full information on the bond, including prospectus, that was approved on 1 July 2011 by BaFin, the German federal financial supervisory authority, is available at https://www.peachproperty.com/bond
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