Acquisition of 382 apartments brings investment portfolio to around 8,400 units
> Acquisition of a residential real estate portfolio with five locations in North Rhine-Westphalia and Lower Saxony
> Portfolio with rental residential space of almost 23,000 square meters, target rental income of around CHF 1.65 million and a rental level of 95 percent
> Peach Property Group’s annual target rental income up to around CHF 41.7 million p.a. as a result of the transaction
Peach Property Group, an investor specialising in the management of residential property in Germany, is further expanding its real estate portfolio. The purchase of a portfolio with 382 apartments in North Rhine-Westphalia and Lower Saxony has lifted the group’s residential portfolio to around 8,400 units with a residential area of around 564,000 square meters. Peach Property Group’s annual target rental income will increase to around CHF 41.7 million p.a. as a result of the acquisition, up from the present CHF 40 million. The contract for the acquisition of the apartments has been notarized yesterday and the transaction is expected to close at the beginning of the fourth quarter of 2018. It has been agreed not to disclose the seller or the purchase price.
Almost 60 percent of the apartments in the new portfolio are located in Bochum (North Rhine-Westphalia), in direct proximity of the Ruhr University. The portfolio is also located in Duisburg, Oerlinghausen by Bielefeld and Helmstedt. An average of around 95 percent are let. In addition to the core portfolio of 382 apartments, Peach Property Group is acquiring further 79 units which are intended for resale.
As has already been successfully implemented for other residential portfolios, Peach Property Group intends to increase the value of the apartments through a focussed positioning in combination with adequate maintenance work for the new apartments. The properties were built between 1926 and 1979 and are in general in a good condition. Still, Peach Property Group is planning to make certain Capex investments, in particular in Bochum, which will further increase the comfort for its tenants. The locations will be integrated into the existing management clusters in Oberhausen, Bielefeld and North Hesse. The group believes that this will result in substantial synergy effects.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased that the expansion of our portfolio is progressing so rapidly and that we have taken a further step towards reaching our medium-term target portfolio of 11,000 apartments. The new apartments are a perfect fit with our portfolio, as they will immediately generate additional cash flow from rental income and, in addition exhibit an attractive potential to increase their value through targeted positioning and renovation work. This is coupled with the fact that we will be able to effectively manage the new apartments by including them in the existing portfolio clusters.”
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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, Dr. Christian De Prati and Kurt Hardt.
For more information, see http://peachproperty.com