Peach Property buys over 1,000 apartments in southwest Germany

In addition to the apartments, the portfolio also includes nine commercial units and 771 parking spaces at three locations in the greater Heidenheim an der Brenz area. Around 98 percent of the portfolio is located in the city of Heidenheim itself, according to Peach Property. The parties have agreed not to disclose the seller or the purchase price; the transaction is expected to be completed in the third quarter of 2018.

According to Peach Property, the buildings were constructed between 1905 and 2006 and are in good condition thanks to continuous investment. The company intends to keep the majority of the apartments in its portfolio for the long term, while a small number of the properties are suitable for privatization. The occupancy rate is estimated at around 95 percent. The annual target rent for the portfolio is reportedly currently around CHF 6.5 million (EUR 5.5 million).

The annual target rental income from the Group's existing portfolio will increase accordingly by a good 18 percent from CHF 34 million to over CHF 40 million as a result of the purchase of the portfolio. The total rentable living space increases to 518,000 sqm.

Heidenheim is located near Ulm and is the headquarters of several internationally active companies, including, for example, the mechanical engineering company Voith and the medical products manufacturer Hartmann. Dr. Thomas Wolfensberger, CEO of Peach Property Group, says: "We are convinced of the location of Heidenheim in Baden-Württemberg with its strong economic power and are very pleased to now be represented here with a leasing cluster which has the critical size from the start."