Peach Property Group AG is significantly expanding its residential portfolio by 42% to approximately 18,300 apartments with a rentable area of 1,190,000m² through the acquisition of a large value-enhancing portfolio. To this end, a purchase agreement for the acquisition of a total of 5,450 residential units offering living space of 324,000m² was notarized. The transaction is expected to close at the end of 2020.
Around 80% of the new portfolio, i.e. about 4.540 units, is located in North Rhine-Westphalia, particularly in Recklinghausen, Bochum, Essen and Gelsenkirchen. Another 550 or so apartments are situated in and around Kaiserslautern and 360 apartments in Neubrandenburg. All apartments are in good structural condition and are located in attractive residential areas. The new portfolio exhibits a residential vacancy rate of just 8.6% and currently generates annual net rent of around €20.7m.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “With this purchase, we are implementing another significant growth step which unlocks significant synergies, both operationally as well as financially. The acquisition will significantly increase our residential portfolio and also strengthen our presence in NRW and Kaiserslautern in particular. By integrating the new holdings into our fully digital platform, we will be able to leverage further potential through efficient joint management with our existing apartments in the portfolio. The opening of three additional Peach Points will enable us to provide a high quality of service also to our new tenants. With around 18,300 apartments in the portfolio and a significant increase in current rental income, we will also be considering the inclusion of a sustainable dividend at the end of 2020 to reflect the enhanced stability and scale of our platform. Finally, as a result of the positive business growth and this major acquisition, we also expect a significant increase in the NAV per diluted share in 2020.”