Peach Property buys again in Germany
Peach Property Group is further expanding its residential portfolio in the German state of Lower Saxony. According to the investor, a contract for the purchase of 287 apartments and three commercial units near the existing portfolio in Munster has been notarized.
The number of apartments in Peach Property Group's portfolio will increase to a total of 2,250 units as a result of this acquisition, and the rentable living space will increase by 19,700 sqm to a total of around 150,000 sqm. The transaction is expected to be completed in May 2016.
The annual target rent for the apartments acquired from a special situation is around one million euros (CHF 1.1 million). The vacancy rate of the residential portfolio is around 50 percent. The gross initial yield of the residential portfolio is nevertheless calculated at over ten percent, according to Peach Property.
The Group intends to revitalize the residential portfolio and thereby reduce the vacancy rate. The neighboring "Gartensiedlung in der Lüneburger Heide" in Munster serves as a model for this; here, Peach Property was able to reduce vacancy to below five percent through revitalization measures. In addition, the joint management of the existing residential portfolio in Munster and the newly acquired residential units located in the surrounding area would result in significant efficiency gains, the statement continues.
Munster is a small town in the Lüneburg Heath, located almost exactly between Hamburg and Hanover. In terms of the number of soldiers stationed there, Munster is the largest location of the German Army and the fourth largest location of the Bundeswehr. (ah)
