Peach Property secures growth financing
Peach Property Group receives a syndicated loan of up to 60 million euros, around CHF 66 million, from German savings banks and Volksbanks. The Group intends to use this to finance its further growth.
In a first step, the residential real estate investor from Zurich has received around 30 million euros (CHF 33 million), in the form of an unsecured loan bearing interest at the five-year mid-swap rate plus 3.25 percent and with a term of five years. The transaction was arranged by Kreissparkasse Biberach.
This new agreed financing is intended to supplement the usual bank loans secured by real estate liens when acquiring real estate portfolios, Peach Property reports. The agreed loan volume can be increased to up to 60 million euros.
The funds are to be used for the acquisition of residential properties in Germany. Since the beginning of 2017, Peach Property has expanded its portfolio in the neighboring country by more than a third to a total of 4,243 residential units.
According to CEO Dr. Thomas Wolfensberger, the Group intends to focus its expansion initially on regions where it already owns properties. This would allow synergy effects to be exploited in portfolio management.
