Peach Property Group AG

EQS-Adhoc: Peach Property Group to acquire two portfolios with 636 apartments in North Rhine-Westphalia

EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Real Estate
Peach Property Group to acquire two portfolios with 636 apartments in
North Rhine-Westphalia

27.03.2015 / 07:01
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

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Press release

Peach Property Group to acquire two portfolios with 636 apartments in North
Rhine-Westphalia

  - Expansion of the standardised, value-enhancing investment property
    portfolio in line with the business strategy

  - Number of apartments owned by Peach Property Group to increase by 72%
    to over 1,500

  - Target rent to rise by around CHF 2.25 million or 20 percent to approx.
    CHF 12 million

  - Reduction of the currently high vacancy rate through active asset
    management and progressive updating of all apartments planned over the
    next 24 months

  - Renovation of the first 110 apartments already underway and scheduled
    to be completed in summer 2015

Zurich, 27 March 2015 - Peach Property Group, a leading investor in
residential and commercial real estate, today announced the notarisation of
an agreement for the purchase of two property companies. Under this
agreement, Peach Property will acquire two portfolios with a total of 636
apartments located north of Düsseldorf in western North Rhine-Westphalia.
This will enable Peach Property Group to push ahead with its strategy of
increasing the focus on the residential side of its investment property
portfolio in conjunction with standardised value creation. The acquisition
will raise the number of apartments in Peach Property Group's portfolio by
72 percent to 1,520 units and increase the lettable floor area by 44,000
square metres to over 100,000 square metres. The annual target rent is
around CHF 2.25 million (EUR 2.1 million); on account of the vacancies,
actual rent is currently CHF 0.9 million (EUR 0.85 million). Altogether,
Peach Property Group's annual target rental income will therefore increase
to over CHF 12 million. The parties agreed not to disclose the purchase
price. The final closing of the transaction is expected to occur in the
coming six to eight weeks.

The portfolios of rental apartments in the mid-price segment are divided
among three sites in the greater Düsseldorf area. Currently, the portfolios
have a high vacancy rate of around 60%, mainly because they were in
administration in recent years owing to the previous owner's financial
difficulties. In many parts, the level of rent in the portfolios is also
significantly lower than the market rent in this area at the present time.
As a result, Peach Property Group sees considerable opportunities for
appreciation through professional, tenant-orientated asset management based
on the planned modernisation and other measures. The annual target rent
Peach Property hopes to achieve for its portfolio is thus over EUR 2.25
million. Up to EUR 6 million has been earmarked for the measures to be
taken in the coming years to increase the portfolio's value. These include
renovating the sanitary facilities, replacing the floor coverings and
windows and installing new electrical systems in parts of the new
portfolio. The exterior space will also be given a facelift in the medium
term.

Dr Thomas Wolfensberger, CEO of Peach Property Group, commented: "By
acquiring the two residential portfolios, we are making considerable
progress in the implementation of our strategy to expand our portfolio of
investment properties and further stabilisation of current revenues. With
selective investments in the new properties we will significantly increase
not only the occupancy rate and hence our rental income, but also the value
of the properties. This is something that we also managed to do in the past
with other properties in our portfolio. Take, for example, our portfolio in
Munster: here, we reduced the vacancy rate by 80 percent in just over three
years to three percent and increased the market value by almost 20 percent.
Going forward, we will look into acquiring additional portfolios so as to
continue to increase the share of investment properties in our property
portfolio and boost current rental income."

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, Peggy Kropmanns
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

Peach Property Group AG is a property investor and developer focused on
investments in Switzerland and Germany. The portfolio includes an
increasing number of investment properties that are designed to generate
sustained income as well as attractive residential development properties.
The Group's activities cover the entire value chain, from site evaluation
to project planning, implementation and marketing. In the investment
segment, the Group is focused on properties with a potential for achieving
attractive yields based on active asset management - typically secondary
locations in the catchment area of urban agglomerations. In the development
segment, the Group concentrates on exceptional locations and properties
with high-end specifications and amenities that meet the requirements of a
demanding clientele.

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).

For more information, see www.peachproperty.com

End of ad hoc announcement

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Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=JCHXYURDFW
Document title: Press release

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27.03.2015 News transmitted by EQS Schweiz AG. www.eqs.com - news
archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.

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Language:    English
Company:     Peach Property Group AG
             Seestrasse 346
             8038 Zürich
             Switzerland
Phone:       +41 44 485 50 00
Fax:         +41 44 485 50 11
E-mail:   investors@peachproperty.com
Internet: www.peachproperty.com
ISIN:        CH0118530366
Valor:       A1C8PJ
Listed:      Regulated Unofficial Market in Berlin, Stuttgart; Open
             Market in Frankfurt ; SIX


End of News    EQS Group News-Service
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