Peach Property buys in western Germany
Peach Property Group remains on course for expansion. The company has acquired a residential real estate portfolio in North Rhine-Westphalia and Lower Saxony, expanding its existing portfolio to around 8,400 units.
According to Peach Property, the portfolio's total of 382 apartments are spread across five locations in North Rhine-Westphalia and Lower Saxony. Just under 60 percent of the apartments are located in Bochum (North Rhine-Westphalia) in the immediate vicinity of the Ruhr University. Other locations are Duisburg, Oerlinghausen near Bielefeld and Helmstedt. The apartments have an average occupancy rate of around 95 percent, and the target rental income is estimated at CHF 1.65 million. The rentable living space is just under 23,000 sqm.
According to the company, the properties, which were built between 1926 and 1979, are "in good general condition," but investments are still planned, particularly in Bochum. In addition to the core portfolio of 382 apartments, Peach Property is taking over a further 79 units, which are to be resold.
The contract for the purchase of the apartments has been notarized, and the closing of the transaction is expected at the beginning of the fourth quarter of 2018, says Peach Property. The company did not provide details on the seller and purchase price.
The transaction brings Peach Property's total apartment portfolio to approximately 8,400 units with 564,000 sq. ft. of rentable living space. annual target rent increases from the current level of approximately 40 million to 41.7 million.
