> Acquisition of 1,066 apartments, 9 commercial units and 771 parking spaces in Heidenheim (Ulm)
> New portfolio with rental residential space of 73,711 square meters and occupancy level of around 95 percent; entire residential rental area increases to 518,000 square meters
> Annual target rental income in total portfolio up by around 18 percent to over CHF 40.0 million; number of residential units increases by 15 percent to around 8,000 units
> Rapid growth of investment portfolio; sights set on medium-term target of 9,000 apartments
Peach Property Group, an investor specialising in the management of residential property in Germany, is further expanding its real estate portfolio. The purchase agreement for the acquisition of 1,066 residential units in Heidenheim an der Brenz, Baden-Württemberg, has been notarised. As a result, the Group’s total residential units increased by 15 percent to more than 8,000 units. The rentable residential space has increased from 445,000 square meters to 518,000 square meters. It has been agreed not to disclose the purchaser or the purchase price; the transaction is expected to close in the third quarter of 2018.
The new residential portfolio, which also includes 9 commercial units and 771 parking places, is in three locations in the greater Heidenheim region; around 98 percent in the city itself. Heidenheim has recorded constant growth in its population over the past few years. The district is economically very strong with several multinational groups headquartered in the area such as Voith, Hartmann and Edelmann. With the new acquisition Peach Property Group expands its clusters of residential properties to southern Germany.
The newly acquired properties were built between 1905 and 2006 and are in good condition thanks to continuous investments. Peach Property Group is planning to further increase the properties’ attractiveness through targeted investments to leverage the existing potential. The majority of the apartments are to stay in Peach Property Group’s portfolio over the long term – a minority is suitable for privatisation. The portfolio has an average rental level of around 95 percent. The annual target rent currently totals around CHF 6.5 million (EUR 5.5 million). Through the acquisition the annual target rental income from Peach Property Group’s investment portfolio has increased by around 18 percent from its current CHF 34.0 million to more than CHF 40.0 million.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “Peach Property has established a strong presence in the south of Germany thanks to this acquisition. We are convinced of Heidenheim in Baden-Württemberg with its strong economy and are very pleased to be represented here with a rental cluster which has a critical size from the very outset. This will allow for a focused asset management with local resources to leverage the existing potential. With this new acquisition we have increased our portfolio of residential property to 8,000 units and have come a major step closer to our medium-term milestone of 9,000 residential units on our books.”
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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
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 https://peachproperty.com