Peach disposes of German commercial property
The real estate investor Peach Property Group is selling its Erkrath Retail commercial property near Düsseldorf. According to Peach, the buyer is a private German investor.
Peach acquired the commercial property in the center of Erkrath-Hochdahl with a rentable area of 6,700 sqm in 2012. According to the company, active asset management and important letting successes have significantly increased the market value of the property since the acquisition. In particular, the lease agreement with Edeka Rhein-Ruhr was extended ahead of schedule by 16 years until the end of 2031.
The contract for the acquisition of all shares in the subsidiary of Peach Property Group (Deutschland) AG, Portfolio Erkrath Retail GmbH, which exclusively owns the Erkrath Retail property, was notarized on 16 February. Peach will receive liquid funds of just under CHF nine million from the sale.
The transaction is expected to be completed in the first quarter of 2016.
The background to the sale is Peach's strategic focus on the residential sector. The funds from the sale will be used to acquire further high-yield residential properties, primarily in Germany, the company announced. (ah)
