EQS Group-News: Peach Property Group AG / Key word(s): Real Estate
Peach Property Group and NOVUM Hotel Group conclude 20-year lease agreement:
former Hoesch headquarters in Dortmund will be transformed into a 4-star
hotel with 210 rooms
2016-07-12 / 07:00
*Press release *
*Peach Property Group and NOVUM Hotel Group conclude* *20-year lease
agreement: former Hoesch headquarters in Dortmund will be transformed into a
4-star hotel with 210 rooms *
- *Hotel with 210 rooms planned in historic building*
- *Lease agreement concluded with NOVUM Hotel Group for a 4-star hotel as
"NOVUM Select"*
- *Tenders for conversion work are underway *
- *Completion planned for the end of 2018*
Zurich, 12 July 2016 - Peach Property Group, an investor specialising in
portfolio management in Germany with a focus on residential property and
selected development projects, has achieved further progress in transforming
the former Hoesch headquarters in Dortmund. Planning permission to convert
the historic building was obtained last year, and Peach has now concluded a
20-year lease agreement with Hamburg-based NOVUM Hotel Group, which is
enjoying dynamic growth. The NOVUM Hotel Group will start operating the
hotel with 210 rooms and space of around 15,500 m2 (gross floor space) under
the "NOVUM Select" brand in spring 2019. The NOVUM Hotel Group currently
holds 84 hotels in Germany and other European countries. The hotel group
already operates a "NOVUM Hotel Unique" and a "NOVUM Hotel Excelsior" in
Dortmund, and is thus well acquainted with the local market.
The building is currently vacant, and will be converted into a 4-star hotel
while maintaining its historic, protected substance. The responsible
authorities already issued the requisite planning permission in 2015, and
tenders for the conversion work are currently running. It is planned to
start the construction work at the end of 2016 and to complete this by the
end of 2018.
In addition to the hotel, the property has around 1,700 m2 of additional
space that is available for an alternative use. Peach Property Group is
currently in advanced-stage negotiations with an interested party for this
space. Peach Property Group is forecasting total annual rental income of
around EUR 1.5 million for a fully let property. As it is possible to write
down investments in this building at an accelerated rate thanks to _Denkmal
AfA _(deprecation for the use of listed buildings), this property will earn
attractive returns after taxes.
The property enjoys a central location at Rheinische Straße 173 to the
west of Dortmund's city centre, and was built between 1916 and 1921. The
listed building has neoclassical architecture and a total rental area of
around 17,200 m2 (gross floor space) and is close to the "U" cultural centre
in the up-and-coming Unionviertel in Dortmund. This district will be
extensively redeveloped in the coming years.
Dr. Thomas Wolfensberger, Peach Property Group's CEO, commented: "We are
very pleased that we have been able to acquire a top-class, financially
strong tenant for this historic property in the form of the NOVUM Hotel
Group. We have once again proven our ability to manage complex real estate
projects. We are now entering into the next stage of realisation by
concluding this lease and to further developing the property."
David Etmenan, managing partner with NOVUM Hotel Group added: "We are very
pleased that we are expanding our portfolio of hotels by adding this very
special project, and that we will be able to offer our guests an exclusive
4-star NOVUM Select Hotel in Dortmund after its completion."
*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 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, see www.peachproperty.com [1]
*About NOVUM Hotel Group *
_The family-run NOVUM Hotel Group ranks among Germany's largest hotel groups
with a current total of 84 hotels and 8,000 rooms in 26 locations in Europe.
NOVUM Hotel Group was formed in 1988 and has enjoyed solid on-track growth
since 1988. It is an extraordinarily dynamic group managed by David Etmenan.
_
_Its portfolio includes 3 and 4-star hotels, always in central locations,
and these are run under the NOVUM Hotels, NOVUM Select, NOVUM Style and
NOVUM LikeApart brands. _
_Contact:_
Jasmin-Madeleine Christensen-Matassa
PR Manager
NOVUM Group
Lange Reihe 2
20099 Hamburg
T +49 40/ 600 808 - 264
E-mail: j.christensen@novumgroup.de
URL: www.novumgroup.de [2]
Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=NJPVDCEVEX [3]
Document title: Press Release
2016-07-12 This Corporate News was distributed by Tensid EQS AG. www.eqs.com
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
480883 2016-07-12
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(END) Dow Jones Newswires
July 12, 2016 01:00 ET (05:00 GMT)
