Acquisition of 1,100 apartments in the greater Bielefeld region
Peach Property Group increases residential portfolio to nearly 6,000 units by purchasing 1,100 apartments in the greater Bielefeld region
> Acquisition of 1,109 apartments mostly in the Bielefeld-Herford region in North Rhine-Westphalia
> New portfolio with rental residential space of 72,598 square meters and rental level of around 95 percent; entire rental area increases to more than 390,000 square meters
> Annual target rental income in total portfolio up by 19 percent to CHF 30 million
> Setting up portfolio progresses faster than planned; medium term target portfolio increased to 9,000 apartments
Peach Property Group, an investor specialising in the management of residential property is progressing rapidly with the expansion of its portfolio. A purchase agreement was notarised for the acquisition of a further 1,109 apartments in North Rhine-Westphalia and Lower Saxony. The Group’s entire residential portfolio has thus increased by 23 percent from 4,870 to 5,979 units and the lettable residential area has been expanded from 317,598 square meters to a current 390,196 square meters. It has been agreed not to disclose the purchaser or the purchase price; the transaction is expected to be closed in the first quarter of 2018.
The new residential portfolio, which also includes 116 parking places, is spread across seven locations in the greater Bielefeld agglomeration. The entire region has been enjoying substantial growth for several years, and exhibits great economic strength with unemployment of 4-5 percent. The majority of the 1,109 apartments is located in North Rhine-Westphalia, 30 units are in Lower Saxony. Most of the properties were built in the 1960s and 1970s and constantly maintained over the past; as a result, there is no maintenance backlog. Peach is planning to further increase the portfolio’s attractiveness by making targeted investments and thus leveraging the existing potential to add value. The portfolio has an average rental level of around 95 percent and generates an annual rental income of CHF 4.4 million (EUR 3.8 million). As a result of the acquisition, Peach Property Group’s annual target rental income has increased by around CHF 4.6 million or around 19 percent, now totalling CHF 30 million.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased to be moving very close to the 6,000 apartments mark by once again purchasing a large portfolio, and thus significantly exceeding our forecasts for 2017. Reaching an annual target rent of CHF 30 million is a milestone that we have been working towards for a long time. The new portfolio, which allows efficient management as a result of its size, offers attractive potential for added value via targeted investments and our asset management. Based on our existing financing and the market opportunities available we have increased our medium term target to 9,000 residential units in our portfolio.”
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Dr. Thomas Wolfensberger, Chief Executive Officer und Dr. Marcel Kucher, Chief Financial Officer
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About Peach Property Group AG
Peach Property Group is a property investor and developer focused on investments in Germany and Switzerland. The Group stands for long time experience, competence and quality. Innovative solutions for modern housing needs, strong partnerships and a wide value chain complete the profile of the Group. The portfolio consists of an increasing number of high yield investment properties, typically in B-cities in close reach to metropolitan areas. In addition, the Group develops properties for its own portfolio or for the sale as condominium. Developments for sale focus on A-locations and encompass attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from property acquisition and site selection to active asset management and finally to the sale or lease of properties.
Peach Property Group AG is headquartered in Zurich and has its German Group headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer and Dr. Christian De Prati.
For more information, see http://peachproperty.com