PTA-Adhoc: Peach Property Group AG: Acquisition of 4,800 residential units in Germany; portfolio grows to CHF 2bn

Friday, 18. September 2020 07:00

Announcement according to SIX adhoc publication article 53 KR

Zürich (pta006/18.09.2020/07:00) - > Increase in the portfolio to more than 23,000 units
> Strengthening of existing locations through the acquisition of apartments in Lower Saxony, North Rhine-Westphalia and Rhineland-Palatinate with significant synergy potential
> Rental income increases by 26 percent to CHF 110m target rent or CHF 97m actual rent, respectively
> Significant appreciation potential: vacancy rate of the new portfolio at 10.8 percent - rents below market level
> Closing of the transaction scheduled for the end of 2020

Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, has entered into a notarial purchase agreement for the acquisition of around 4,800 apartments in Germany and hence increases its portfolio by 26 percent to more than 23,000 residential units.

As a result of the new transaction, the value of the investment portfolio increases already now to the range of the recently published short- to medium-term target of around CHF 2bn. Closing of the transaction is expected to take place at the end of 2020. The parties have agreed not to disclose the seller and the purchase price.

After the acquisition of 5,450 apartments announced at the end of July 2020, Peach Property Group continues its dynamic growth course with the current transaction. The portfolio now acquired has a total residential floor space of around 295,000 sqm. The addition brings the overall residential area of the Peach portfolio to a record 1.5 million sqm. The new portfolio exhibits significant value creation potential, amongst others, from letting currently vacant apartments as well as the fact that the average rent is currently significantly lower that the respective market rent. The residential vacancy rate of the newly acquired portfolio stands at 10.8 percent.

The portfolio generates actual rental income of around CHF 19.9m p.a. (EUR 18.7m); the acquisition boosts the overall actual rents generated of Peach Property Group by 26 percent to more than CHF 97m; the annualised target rental income will rise in parallel to more than CHF 110m p.a.

Around 2,100 apartments or 44 percent of the newly acquired residential units are located in the economically strong triangle between Wolfsburg, Braunschweig as well as Magdeburg and add to the roughly 100 units Peach Property Group already owns in the area.

Another 35 percent of the newly acquired apartments are in North Rhine-Westphalia complementing the existing portfolio. A third focus of the acquisition is Ludwigshafen (Rhineland-Palatinate), with its strong industrial history. With the acquisitions in several federal states Peach Property Group significantly strengthens its already existing core regions. All new apartments will be integrated onto Peach Property Group's tried and tested, fully digital platform and will hence generate economies of scale and synergies as of day one. In the wake of the expansion two additional Peach Points are planned to be opened.

With regard to the financing of this transaction as well as the one announced at the end of July Peach Property Group has entered into an agreement with an international consortium of banks regarding the debt part and is in very advanced negotiations with institutional investors regarding the equity share; the target value of an LTV for the overall portfolio of less than 60 percent remains intact.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, comments: "We are pleased to have been able to continue to extend our portfolio through one of the largest transactions in our corporate history. In the course of the current year we have already acquired more than 10,000 apartments in Germany and hence underpinned our relevance as a player on this market. With a perspective of more than 23,000 units, which are concentrated in our core regions, we reached a size that allow significant benefits in terms of management, but also in the field of financing. Our fully digital platform and the Peach Point concept allow us to manage the residential portfolio in such a way that generates considerable economies of scale and synergies. The efficiency of the platform was recently proven again, for instance, by the reduction of the vacancies to 8.2 percent and the increase of the "like-for-like" rents by 5.4 percent as per the first half year 2020 - and this in the midst of the COVID-19 pandemic."

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The Peach Property Group is a property investor and developer focused on investments in Germany. The Group stands for long time experience, competence and quality. Innovative solutions for modern housing needs, strong partnerships and a wide value chain complete the profile of the Group. The portfolio consists of high-yield investment properties, typically in B cities in close reach to metropolitan areas. In addition, the Group develops properties for its own portfolio or for the sale as condominium. In the latter area, the Group focuses on A locations and properties with an attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from site evaluation via acquisition to active asset management and the sale or letting of the properties.

Peach Property Group AG is headquartered in Zurich and has its German Group headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.

For more information, see http://peachproperty.com

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emitter: Peach Property Group AG
address: Neptunstrasse 96, 8032 Zürich
country: Switzerland
contact person: Dr. Thomas Wolfensberger and Dr. Marcel Kucher
phone: +41 44 485 50 00
e-mail: investors@peachproperty.com
website: www.peachproperty.com

ISIN(s): CH0118530366 (share)
stock exchanges: listed in SIX Swiss Exchange; open market (free market) in Frankfurt, free market in Stuttgart; open market in Berlin

[ source: http://www.pressetext.com/news/20200918006 ]

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