Peach Property Group acquires further property portfolio in North Rhine-Westphalia
- Acquisition of a pure residential portfolio with 266 units in Bochum and Hamm
- Target rent of around CHF 1.1 million (EUR 0.95 million) with a vacancy rate of around 5%
- Existing residential portfolios in the area to deliver management synergies
- Total residential portfolio increases to around 4,600 apartments, target rent to around CHF 24.1 million
Zurich, 13th September 2017 – Peach Property Group, an investor focused on investments in residential property in Germany, today announced the acquisition of further 266 residential units in North Rhine-Westphalia, specifically 201 apartments in Bochum and 65 in Hamm. With a population of 365,000 and 180,000, respectively, Bochum and Hamm are among the 15 largest cities in North Rhine-Westphalia. Both form part of the Düsseldorf-Dortmund-Essen metropolitan area. The properties were sold by a large, regional property company, and both parties have agreed not to disclose the purchase price. The closing of the transaction is expected to take place in late November.
Comprising a living area of around 14,300 square meters, the newly acquired properties are situated close to the existing Peach Property Group portfolios in Oberhausen, Duisburg and Mühlheim. This creates synergies in managing the entire portfolio. Peach Property Group also plans to expand tenant support as part of its active asset management approach and to further enhance the already good overall state of the properties acquired through moderate modernizations. Peach Property Group also aims to reduce the current vacancy rate of 4.8 percent. The acquisition is expected to increase the annual target rent for the Group’s entire portfolio from around CHF 23.0 million to just under CHF 24.1 million. The total property portfolio of Peach Property Group increases to around 4,600 apartments as a result of the acquisition.
Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: “The new portfolio is a perfect match for our existing property holdings in the region. We therefore expect to soon see both positive effects in managing the apartments and a decrease in the vacancy rate.”