Portfolio increases to around 13,000 apartments thanks to new acquisition in NRW
-> Purchase contract for residential portfolio with 528 units notarised; focus on Essen and Dortmund
-> New portfolio with annual actual rental income of CHF 2.4 million and a vacancy rate of 9.7 percent
-> Closing expected by the end of Q1 2020
-> Target rent for the group lifts by 4.1 percent to more than CHF 66 million
Peach Property Group, an investor specialising in the management of residential property in Germany, has notarised a purchase agreement for 528 apartments in North-Rhine Westphalia. The transaction, which is expected to be closing by the end of the first quarter of 2020, will increase the Group’s total residential portfolio by a good 4 percent from around 12,450 to around 12,975 units. The rentable area will also increase by around 4 percent or 36,000 square meters to over 866,000 square meters. This figures already include the acquisition of more than 3,650 apartments announced in September, which will be completed by the end of 2019. Peach Property Group’s annual target rental income will increase to around CHF 66.1 million p.a. as a result of the latest transaction. It has been agreed not to disclose the seller or the purchase price.
The majority of the newly acquired portfolio, which also includes a small proportion of commercial space with around 500 square metres, is located in Essen and Dortmund, both cities with over 500,000 inhabitants. With a vacancy rate of currently 9.7 percent, it currently generates an annual net rent (excluding heating and auxiliary costs) of CHF 2.4 million (EUR 2.2 million). The buildings and apartments are in good condition and the Peach Property Group expects that the tenant-oriented management approach and the strong local presence with its Peach Points will enable it to significantly reduce vacancies in the short term.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO: “The new apartments are the perfect way to expand our real estate portfolio. The acquisition allows us to expand our presence in the two largest B-cities in NRW and optimally leverages our existing Peach Points in Oberhausen and Gelsenkirchen. We continue to care for our new tenants in the best possible way and see substantial potential going forward.”
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Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
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About Peach Property Group AG
The Peach Property Group is a real estate investor and developer with an investment focus in Germany. The group stands for many years of experience, competence and quality. Innovative solutions for state-of-the-art living needs, strong partnerships and a broad value chain round off the profile. The portfolio consists of high-yield portfolio properties, typically in B-cities in the catchment area of conurbations. In addition, the Group develops real estate for its own portfolio or for condominium marketing. In the latter area, the Group concentrates on A locations and properties with attractive architecture and upscale furnishings for an international clientele. Its activities span the entire value chain from evaluating locations through to acquisitions and also active asset management and property sales or lettings.
Peach Property Group AG has its registered office in Zurich and the Group is headquartered in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.
You can find more information at http://peachproperty.com