- Purchase agreement for 273 residential units in Kaiserslautern and Saarbrücken notarized
- Lettable residential area in total portfolio increases by 12,544 square meters to 317,513 square meters
- New portfolio is around 94 percent let with actual rental income of around CHF 1 million (EUR 0.9 million) per year
- Annual target rental income increases to CHF 25.1 million
Zurich, 29 September 2017 – Peach Property Group, an investor specialising in the management of residential property in Germany, has further expanded its real estate holdings by buying 273 apartments in Kaiserslautern and Saarbrücken. The purchase agreement for the acquisition of the apartments, which also include 64 parking spaces, was notarized yesterday. As a result, Peach Property Group’s portfolio of residential properties grows by 6 percent to 4,870 units. Lettable residential area in total will increase by 12,544 square meters to 317,513 square meters. The apartments have been sold by a major German real estate company; it was agreed not to comment on the purchase price. The transaction is expected to close by the end of this year.
The majority of the new apartments are located in Kaiserlautern in direct proximity to the Peach Property Group’s existing portfolio. The Group’s total portfolio in Kaiserslautern has increased to a current total of more than 1,100 apartments as a result of the purchase, up from the previous around 900 units. 47 residential units in the new portfolio are located directly in Saarbrücken city center. Most of the properties have been renovated during the past few years, and are accordingly in a good structural condition. The portfolio thus also offers a higher average living quality. Around 94 percent of the portfolio is let, and it currently generates an annual rental income of CHF 1.0 million (EUR 0.9 million). Peach Property Group’s annual target rental income thus increases by around one million Swiss francs to now CHF 25.1 million.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We have dynamically further expanded our investment portfolio and our rental income with the acquisition of the additional apartments in Kaiserslautern and Saarbrücken as planned. The new apartments have an attractive potential for added value, which we plan to realise through our active asset management. In addition, synergy effects result from the efficient management together with the other apartments which we already own in the region of Kaiserslautern.”