Zurich-based residential investor Peach Property has signed the largest transaction in the company's history, with the acquisition of 5,450 apartments in Germany.
Financial details were not disclosed, but the firm reported that the current rental income amounts to CHF 22 mln; and SRC Research said it expected a yield of around 5.5%.
The deal increases the value of Peach's existing portfolio to an estimated CHF 1.5 bn, across some 18,300 rental units covering 1,190,000 m2 of space. The new deal increases Peach's holdings, in terms of apartments, by 42%.
Around 80% of the properties acquired are in North Rhine-Westphalia (4,540 units), with the rest in Kaiserslautern (550) and Neubrandenburg (360). The new portfolio has a vacancy rate of 8.6%.
Peach Property expects the transaction to close at the end of the year. The firm said that a range of financing options - involving a mix of equity and debt - were under consideration.
SRC Research said that it had lifted its P&L estimates for the firm following the transaction, and said that its expectation that the firm would pay a dividend for the 2020 fiscal year had been confirmed by management.
