Peach Property buys another German residential portfolio
Peach Property Group continues to expand its portfolio. The real estate company has acquired 1,109 apartments in the German states of North Rhine-Westphalia and Lower Saxony.
With the latest acquisition, the company's total residential portfolio will increase by 23 percent to 5,979 units, and the rentable living space will be expanded from 317,598 sqm to 390,196 sqm, Peach Property reports. The parties have agreed not to disclose the seller or the purchase price. The closing of the transaction is expected to take place in the first quarter of 2018.
The new residential portfolio, which also includes 116 parking spaces, is located at seven sites in the greater Bielefeld area, according to Immobilien-AG. The entire region has been showing attractive growth for years and is economically strong with an unemployment rate of four to five percent, the company says.
The majority of the 1,109 apartments are located in North Rhine-Westphalia; 30 units are in Lower Saxony. The majority of the properties were built in the 1960s and 1970s and have been continuously maintained in recent years; there is therefore no maintenance backlog. Peach Property intends to continue investing in the assets and leverage the existing value-add potential. The portfolio has an average occupancy rate of around 95 percent and generates annual actual rent of CHF 4.4 million (EUR 3.8 million). The target rental income of the Real Estate Group will increase by around 19 percent to approximately CHF 30 million per year as a result of the acquisition.
As Dr. Thomas Wolfensberger, CEO of Peach Property Group, says, the company has significantly exceeded its planning for 2017 as a result of the new acquisition. "Based on our existing financial resources and the available market opportunities, we are increasing our medium-term milestone target to 9,000 residential units in our portfolio."
