EQS-News

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

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

12.07.2016 / 07:00

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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.