Peach Property Group AG

EQS-Adhoc: Peach Property Group acquires further residential properties in Lower Saxony and increases residential portfolio to 2,250 units

EQS Group-Ad-hoc: Peach Property Group AG  / Key word(s): Real Estate
Peach Property Group acquires further residential properties in Lower Saxony and
increases residential portfolio to 2,250 units

04.04.2016 / 07:00
Release of an ad hoc announcement pursuant to Art. 53 KR.
The issuer is solely responsible for the content of this announcement.

Press release

Peach Property Group acquires further residential properties in Lower Saxony and
increases residential portfolio to 2,250 units

-Acquisition of 287 apartments and 3 commercial units

-Living space of 19,700 square metres

-Gross initial yield over 10 percent

-Attractive upside potential due to 50% vacancy rate to be realised through
sustainable revitalisation measures

-Joint management with existing portfolio provides efficiency gains

Zurich, 4 April 2016 - Peach Property Group, an investor specialising in the
management of residential property in Germany, today announced the notarisation
of an agreement to acquire 287 apartments and 3 commercial units near its
existing portfolio in Munster/Lower Saxony, further expanding the Group's
residential portfolio in this region. This acquisition rises the number of
apartments owned by Peach Property Group to a total of 2,250 units, with the
lettable floor area increasing by 19,700 square metres to a total of around
150,000 square metres. The closing of the transaction is expected to take place
in May 2016.

The annual target rent of the properties, which were acquired out of a special
situation, is around EUR 1.0 million (CHF 1.1 million). The residential
portfolio has a vacancy rate of around 50 percent. Nonetheless, the residential
portfolio's initial gross yield is over 10 percent.

The newly acquired residential complex, which taken together constitutes a
listed group of buildings, has a central location and attractive outside spaces.
Peach Property Group will revitalise the residential portfolio in a sustainable
manner, thereby reducing the vacancy rate considerably. The approach will be
similar to one followed in the neighbouring "Gartensiedlung in der Lüneburger
Heide" in Munster, where Peach Property Group succeeded in lowering the vacancy
rate to under 5 percent through various revitalisation measures. Furthermore,
the joint management of the existing residential portfolio in Munster and the
new residential units acquired in its vicinity will result in considerable
efficiency gains.

Dr Thomas Wolfensberger, CEO of Peach Property Group AG, said: "This latest
acquisition increases our residential portfolio to more than 2,250 units. With
this acquisition we have shown that we are able to purchase property at very
favourable terms even in the current market situation. We managed to reduce the
vacancy rate in our Munster portfolio substantially over the past few years and
created attractive living space in the mid-price segment. This is an approach we
will also pursue with our newly acquired residential portfolio. In addition, we
will benefit from the joint management of these properties and the residential
complexes situated nearby."


Media, investors and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief
Financial Officer
+41 44 485 50 00 |

German media

edicto GmbH, Axel Mühlhaus, Peggy Kropmanns
+49 (0) 69 90 55 05 52 |

About Peach Property Group AG

Peach Property Group is a property investor and developer focused on investments
in Germany and Switzerland. 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 an increasing number 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.
Developments for sale focus on A-locations and encompass attractive architecture
and high level furnishing for an international clientele. The business
activities of the Group cover the entire value chain, from property acquisition
and site selection to active asset management and finally to the sale or lease
of 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).

For more information,

End of ad hoc announcement

Additional features:

Document title: Press Release

04.04.2016 News transmitted by EQS Schweiz AG. - news archive:

The issuer is responsible for the contents of the release.

Language: English

Company:  Peach Property Group AG

          Seestrasse 346

          8038  Zürich


Phone:    +41 44 485 50 00

Fax:      +41 44 485 50 11


ISIN:     CH0118530366

Valor:    A1C8PJ

Listed:   Regulated Unofficial Market in Berlin, Stuttgart; Open Market in
Frankfurt ; SIX

End of News EQS Group News Service
450799  04.04.2016 

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