Increase in number of apartments by 13 percent to more than 6,700 units
Acquisition of a portfolio with 793 residential units in Hesse and Thuringia to supplement the existing portfolio in the north of Hesse
> Number of apartments in this region up to 1,245
> New portfolio has 44.168 m2 of residential space and an occupancy level of roughly 93 percent
> Annual target rental income in Peach Property’s total portfolio up by around 10 percent to CHF 33 million
Peach Property Group, an investor specialising in the management of residential property has significantly increased the number of its investment properties. The number of residential units in the total portfolio has increased by 13 percent to 6,772 units as a result of the acquisition of 793 apartments in Hesse and Thuringia. The corresponding purchase agreement has been notarised and closing is scheduled for this year. Peach Property Group has with this acquisition increased its annual target rental income by around 10 percent to a current total of CHF 33 million. The new portfolio has increased the rentable living space by 44,168 square meters or around 12 percent to a total of 434.364 square meters.
The newly acquired residential portfolio comprises 793 residential units as well as one commercial unit and 165 parking places. It expands over four locations in the east of Hesse and the west of Thuringia and is close to the residential portfolio which Peach Property Group already owns in northern Hesse. The entire number of apartments in this region has thus increased to 1,245 – all located within a radius of 40 kilometres allowing an efficient management. The region along the A4 and A7 motorways between the urban conurbations of Kassel and Erfurt benefits from a large number of companies focusing on the logistics and automotive sectors, including many companies in the future-proof e-mobility industry. Major employers such as Amazon, Deutsche Bahn, Bosch, Opel, Continental and BMW have formed centres of competence in this region and correspondingly been increasing the number employee numbers.
A substantial proportion of the new apartments have two and three rooms. As a result of a total refurbishment in 2004, the majority of the properties are in excellent condition. The new portfolio has a 93 percent occupancy level and the annual target rent totals CHF 2.8 million (EUR 2.4 million).
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “The four locations of the new portfolio are in close proximity to each other and are a perfect supplement to our existing portfolio, which means that we will be able to record major synergy effects when managing and supporting our tenants. We also want to work actively with our new portfolio and further increase the properties’ value with specific renovation activities. In combination with the fact that the average rent for the apartments is currently significantly below the market level our this represents an attractive opportunity to increase rent levels over the coming years. Peach Property Group has taken a key step in the Group’s growth with this purchase, bringing us closer to our target of 9,000 apartments.”
Contacts:
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer und Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com
Media Germany
edicto GmbH, Axel Mühlhaus, Peggy Kropmanns
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de
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