GTC Group’s management board has announced the acquisition of a residential portfolio in Germany, currently held by Peach Property Group. The portfolio is spread around the cities of Kaiserslautern, Helmstedt, and Heidenheim. It comprises 5,165 residential, 47 commercial units, 71 other units, and 2,108 parking units with a total leasable area of 324,167 sqm. GTC said the portfolio has an adjusted property value of approximately €448 million based on full ownership.
“We were able to achieve a good and fair purchase price for the portfolio in difficult market conditions, which was in line with our expectations. The additional cash inflow provides us with considerable financial flexibility. Together with the capital increase of around €120 million planned for this year, for which we have approached major shareholders to obtain advance commitments, this portfolio transaction will contribute significantly to the upcoming refinancing tasks,” said Gerald Klinck, CEO of Peach Property Group. The group will get around €120 million from the sale and will use the proceeds to finance investments in its core portfolio and to repay financial debt.
As part of the deal, GTC will purchase stakes up to 89.9% of the portfolio partnerships and up to 89.9% of the portfolio companies FH Portfolio Acquico and Peach Property Group. GTC will also be granted an option to purchase an additional 10.1% of the portfolio companies at an option price.
GTC said the deal will be financed through a combination of existing senior bank loans of approximately €185.4 million, participating bonds and senior secured debt.
Following this transaction, 19% of GTC Group’s combined gross asset value and 30% of its rental area will be based in Germany.
Going forward, GTC plans to upgrade the properties and sell part of the residential units at improved prices.
