Peach Property acquires in Germany
The residential real estate investor Peach Property is acquiring a portfolio with a total of 5,450 residential units and 324,000 sqm of living space. The apartments are predominantly located in the Ruhr region.
With the acquisition of the portfolio, the company is expanding its residential portfolio by 42% to around 18,300 apartments with a leasable area of 1.19 million sqm, says Peach Property. The purchase agreement for the total of 5,450 residential units has already been signed; the closing of the transaction is expected to take place by the end of 2020.
About 80% of the portfolio, or 4,540 units, are located in North Rhine-Westphalia, particularly in the Ruhr cities of Recklinghausen, Bochum, Essen and Gelsenkirchen, according to Peach Property. Another 550 or so apartments are in and around Kaiserslautern and 360 apartments in Neubrandenburg, it said. All the apartments are in good structural condition and are in attractive residential locations.
The apartment vacancy rate in the portfolio is 8.6% in total; the annual net cold rent is around CHF 22 million (EUR 20.7 million). With the acquisition, Peach Property Group's expected rental income will increase by around 40% to more than CHF86 million per year. According to the company, further acquisitions are planned; in the short to medium term, the existing portfolio is expected to grow to around CHF2 billion or around 25,000 apartments. (ah)
