Press release
Peach Property Group AG: Sale of major "Am Zirkus 1" project completed
- Project sale to KanAm Grund Group special property fund executed
- Cash return of CHF 13 million is slightly above the expected range
- Full occupancy of the property achieved
- Continued implementation of the strategy with a stronger focus on investment properties
Zurich, 19 February 2015 - Peach Property Group, a leading investor in residential and commercial real estate, today announced that it has completed the sale of its major "Am Zirkus 1" project in Berlin. The agreement concerning the sale of the property to a special property fund of KanAm Grund Group had been notarised in October 2014. Execution had been subject to several qualitative conditions, all of which have now been met. The transaction will generate a cash return of approx. CHF 13 million for Peach Property Group, which is slightly above the expected range. These funds are earmarked for the continued reduction of liabilities and for the expansion of the Group's investment portfolio in line with its strategy, thus increasing current income further. In this sale, Peach Property Group was advised by Tylor Wessing and CBRE.
The "Am Zirkus 1" project was developed by a joint venture with Deutsche Immobilien AG (DIAG), in which Peach Property Group held a share of 80 percent. The building is situated in a central location directly on the River Spree in Berlin, next to Peach's "yoo berlin" project of up-market condominiums. On an area of around 11,000 square metres, it comprises a 4-star hotel with 309 rooms operated by the Fattal Group under the "Leonardo" brand as well as several commercial and office units with a gross floor area of around 5,000 square metres. The anchor tenant is the strategy consulting firm Roland Berger Strategy Consultants. The remaining commercial spaces have also been rented out in the meantime. The Association of German Engineers (VDI) is another major tenant that signed a long-term lease at attractive market terms. As a result, the joint venture is handing over a fully occupied property.
Thomas Wolfensberger, CEO of Peach Property Group: "The sale of this major project marks yet another step in the implementation of our strategy. We are completing a high-volume project development, reducing the share of this business segment. We will be using the funds gained from this transaction for the continued development of our existing investment properties and for the acquisition of new investment properties. Furthermore, we are reducing our liabilities, thus improving our financial structure."
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
