Peach Property buys again
Peach Property Group has acquired another real estate portfolio in Germany. The company is buying 901 apartments, ten commercial units and 589 parking spaces in Kaiserslautern (Rhineland-Palatinate).
The acquired portfolio comprises a leasable area of around 63,400 sqm, increasing the total area in Peach Property Group's existing portfolio by 34 percent to just under 250,000 sqm and the number of apartments by around 40 percent to around 3,150 units.
All that was known about the seller was that it was a large German real estate company. The parties also agreed not to disclose the purchase price. The purchase agreement was notarized on August 19, and the transaction is expected to close in the fourth quarter of 2016.
The new residential portfolio has an annual target rent of around CHF 4.4 million and generates an actual annual net rent of around CHF 4.1 million. The properties, most of which were built in the 1970s and 1980s, are spread across twelve locations in Kaiserslautern and are in good structural condition, according to the company. The overall vacancy rate is less than five percent.
Dr. Thomas Wolfensberger, CEO of Peach Property Group, says: "Through the acquisition, we are increasing our annual target rental income by more than 37 percent to over CHF 16 million. Around 85 percent of rental income now comes from residential properties." (ah)
