Press release
Peach Property Group acquires 1,114 apartments in North Rhine-Westphalia - consolidated target rent increases by 35 percent to CHF 22 million p.a.
- Purchase agreement for a residential portfolio with approx. 73,000 m2 of residential space in Oberhausen and Duisburg has been certified, rentable residential space increases to more than 283,500 m2
- Peach Property Group's portfolio of residential properties grows by more than one third to around 4,243 units
- Target rental income of CHF 5.7 million p.a.
- Attractive residential properties with buildings in excellent condition and high rental levels of around 95 percent
Zurich, 15 March 2017 - Peach Property Group has increased its real estate portfolio by more than one third to a total of 4,243 residential units by acquiring 1,114 apartments in North Rhine-Westphalia. The rentable residential space in the group's entire real estate portfolio has thus increased by around 73,000 square meters to approx. 283,500 square meters. Annual target rental income for Peach Property Group has increased by CHF 5.7 million to CHF 22 million as a result of the purchase. The corresponding purchase agreement was certified by the notary yesterday, and closing is scheduled for the first half of 2017. The properties are being sold by a major German real estate company; it has been agreed not to disclose the purchase price.
The new portfolio, which also includes 679 parking bays, is mostly located in the district Alt-Oberhausen of Oberhausen, close to Essen and Düsseldorf. 47 apartments are located in nearby Duisburg. The buildings are in excellent condition, which means that no major renovation work is required. Around 95 percent of the units have been let and the portfolio currently generates annual rent of CHF 5.4 million (EUR 5.0 million).
The new portfolio includes the largest connected group of so-called "Zechenhäuser" (renovated, former colliery houses) available for rent in the Ruhr region. These account for around 40 percent of the annual basic net rent in the new portfolio. The colliery houses are very popular with tenants as they have single-family house character with large gardens. The vacancy rate is correspondingly low for these 385 residential units at just 1.9 percent.
This portfolio which Peach Property Group is now acquiring also includes 100 apartments suitable for old-age residences, for which Caritas offers support for the residents. The portfolio also includes several multi-family dwellings, which mostly stem from Germany's "Gründerzeit" and also offer attractive residential space. The majority of these properties were renovated at the end of the 1980s and at the start of the 1990s.
Oberhausen is migrating from an industrial to a service location. Shopping and leisure facilities represent important elements of the economy. The CentrO in Oberhausen, for example, is one of Europe's largest shopping and leisure centers with more than 830,000 square meters of operating space and 220 shops. There are also a number of tourist attractions in Oberhausen, such as the Legoland Discovery Center, the Sea-Life Aquarium, the König Pilsner Arena or the Metronom Theater. At the end of 2016, more than 212,000 people were living in Oberhausen.
Dr. Thomas Wolfensberger, Peach Property Group's CEO, commented: "We are re-dimensioning thanks to this purchase, and have grown our real estate portfolio to around 4,250 units. This means that we are a major step closer to our goal of reaching around 5,000 apartments over the short to medium term. Thanks to our active asset management which clearly focuses on tenants, we also want to grow the value of these new apartments, further reduce vacancies and increase rental income. The acquisition of this portfolio has already increased our current rental income by almost 40 percent, and target rental has increased by around one third per year."
Contacts:
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and 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).
For more information, see www.peachproperty.com
