Peach Property buys almost 3,700 apartments in Germany
Peach Property has made another purchase: The residential real estate investor acquired a portfolio with a total of 3,672 residential units in the Ruhr region as well as in Bielefeld and Kaiserslautern.
According to Peach Property, the portfolio includes apartments in the Ruhr cities of Bochum, Essen, Gelsenkirchen and Velbert, as well as in Bielefeld and Kaiserslautern - all locations where Peach Property already has a presence.
With 221,000 sqm of residential space, the newly acquired portfolio generates annual net cold rents of around CHF 14.4 million (EUR 13.3 million). The current rent level is in part significantly below the current market level or the rentals of the past twelve months. Further yield potential also exists through the optimization of the vacancy rate, which currently stands at just under 9%. The company expects to be able to reduce the vacancy towards the market vacancy of 35 to 5% within one to two years after closing, depending on the location.
According to Peach Property, the purchase agreements have been notarized and the closing of the transaction is scheduled for the end of December 2019. The parties have agreed not to disclose the seller or the purchase price. The purchase will be financed by a mixture of equity and debt, it adds.
The acquisition will increase Peach Property's apartment portfolio by 40% to 12,450 units with a market value of CHF 1.1 billion at year-end. The leasable area will then amount to 785,000 sqm and the target rent will total 62 million. Peach Property expects the net asset value (NAV market values) per share to be in the range of CHF 39.00 (fully diluted) and CHF 45.00 (basic) at year-end 2019. (ah)
