Peach Property acquires in Germany
Peach Property is massively expanding its real estate portfolio. The company has purchased a portfolio of 1,114 apartments in North Rhine-Westphalia.
According to Peach Property, the portfolio comprises around 73,000 sqm of residential space in the cities of Oberhausen and Duisburg. The Group's residential portfolio thus increases by over 33 percent to 4,243 units.
The annual target rental income of Peach Property Group will increase by CHF 5.7 million to CHF 22 million as a result of the purchase. The corresponding purchase agreement was notarized on March 14; closing is expected in the first half of 2017. Nothing was disclosed about the seller or the amount of the purchase price.
The new portfolio, which also includes 679 parking spaces, is largely located in the Alt-Oberhausen district of Oberhausen. 47 apartments are located in neighboring Duisburg. According to Peach Property, the buildings are in good structural condition, so no major renovation measures are necessary. The occupancy rate is reportedly around 95 percent overall, and the portfolio generates annual actual rent of 5 million euros (CHF 5.4 million).
Large stock of colliery houses
The new portfolio comprises the largest contiguous stock of so-called colliery houses - refurbished former miners' houses - for rent in the Ruhr region. These account for around 40 percent of the new portfolio's annual net rent. The colliery houses are very popular with tenants because of their single-family character and large gardens. At 1.9 percent, the vacancy rate for these 385 residential units is correspondingly low.
The portfolio that Peach Property Group is now acquiring also includes around 100 apartments suitable for retirement living, for which Caritas also offers care for the residents, as well as several apartment buildings, most of which date back to the Gründerzeit. The majority of these properties were completely renovated in the late 1980s and early 1990s.
