Swiss Peach Property Group acquires 1,114 apartments in North Rhine-Westphalia,Germany
Peach Property Group has increased its real estate portfolio by more than one third to a total of 4,243 residential units by acquiring 1,114 apartments in North Rhine-Westphalia. The rentable residential space in the group’s entire real estate portfolio has thus increased by around 73,000 square meters to approx. 283,500 square meters. Annual target rental income for Peach Property Group has increased by CHF 5.7 million to CHF 22 million as a result of the purchase. The corresponding purchase agreement was certified by the notary yesterday, and closing is scheduled for the first half of 2017. The properties are being sold by a major German real estate company; it has been agreed not to disclose the purchase price.
The new portfolio, which also includes 679 parking bays, is mostly located in the district Alt-Oberhausen of Oberhausen, close to Essen and Düsseldorf. 47 apartments are located in nearby Duisburg. The buildings are in excellent condition, which means that no major renovation work is required. Around 95 percent of the units have been let and the portfolio currently generates annual rent of CHF 5.4 million (EUR 5.0 million).
The new portfolio includes the largest connected group of so-called “Zechenhäuser” (renovated, former colliery houses) available for rent in the Ruhr region. These account for around 40 percent of the annual basic net rent in the new portfolio. The colliery houses are very popular with tenants as they have single-family house character with large gardens. The vacancy rate is correspondingly low for these 385 residential units at just 1.9 percent.
This portfolio which Peach Property Group is now acquiring also includes 100 apartments suitable for old-age residences, for which Caritas offers support for the residents. The portfolio also includes several multi-family dwellings, which mostly stem from Germany’s “Gründerzeit” and also offer attractive residential space. The majority of these properties were renovated at the end of the 1980s and at the start of the 1990s.
Oberhausen is migrating from an industrial to a service location. Shopping and leisure facilities represent important elements of the economy. The CentrO in Oberhausen, for example, is one of Europe’s largest shopping and leisure centers with more than 830,000 square meters of operating space and 220 shops. There are also a number of tourist attractions in Oberhausen, such as the Legoland Discovery Center, the Sea-Life Aquarium, the König Pilsner Arena or the Metronom Theater. At the end of 2016, more than 212,000 people were living in Oberhausen.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are re-dimensioning thanks to this purchase, and have grown our real estate portfolio to around 4,250 units. This means that we are a major step closer to our goal of reaching around 5,000 apartments over the short to medium term. Thanks to our active asset management which clearly focuses on tenants, we also want to grow the value of these new apartments, further reduce vacancies and increase rental income. The acquisition of this portfolio has already increased our current rental income by almost 40 percent, and target rental has increased by around one third per year.”
Source: Peach Property Group