- A Swiss real estate company is facing criticism in Germany.
- Some of its tenants are living in catastrophic conditions, as highlighted in a recent television report.
- “It’s just about squeezing rent out of here,” critics say.
- The company, whose building in Bremen made headlines last year, partially blames the tenants for the issues.
Tenants in Germany are reporting appalling living conditions in properties owned by Swiss firm Peach Property Group AG, including garbage-strewn stairwells, broken elevators, and even a ban on showering due to Legionella contamination. The situation underscores growing concerns about housing quality and tenant rights in the country.
Residents of buildings in Bremen and Marl describe conditions such as piles of trash and syringes in hallways, weeks-long elevator outages, and a complete prohibition on using showers in one apartment complex due to dangerously high levels of Legionella bacteria in the hot water system.
Peach Property, headquartered in Zurich, manages rental properties in over a dozen German cities from its German base in Cologne. The company specializes in acquiring properties in more affordable areas.
Financial Difficulties
The company was profitable until 2021, but has since fallen into financial difficulty with rising interest rates. Peach Property has recently reported losses totaling millions of euros.
A Peach Property building near the Bremen train station has been described as an “eyesore,” with sealed balconies, trash-filled stairwells, and reports of drug users. Residents have also experienced prolonged heating outages and have been trapped in their apartments due to broken elevators, according to a report by “Spiegel TV.”
“Just Squeezing Rent”
“The landlord doesn’t care about the people in the 160 apartments, it’s just about squeezing rent out of here,” said Sofia Leonidakis. “Here’s purely a speculative object.” For the Left Party politician, the Bremen building is a prime example of what happens when “housing becomes a commodity.”
In response to the report, Peach Property stated that it had only owned the building for a few years and was “gradually” addressing issues such as fire safety, maintenance, and investment, with a six-figure sum already allocated to planning.
Shower Ban in Marl
However, “Spiegel TV” reported little evidence of these improvements. The problems are not limited to Bremen. In Marl, in the Ruhr area, the hot water in 16 apartments is contaminated with Legionella, prompting a shower ban communicated only through a posted notice. The levels of Legionella detected are described as alarming.
Peach Property Blames Tenants
While the installation of sterilizing filters on faucets was ordered to prevent inhalation of the bacteria, resident Carsten Müller says they were never installed in his apartment. He now states, “The whole building would have to be closed and restored from roof to basement.”
Peach Property Group, however, appears to place the blame on its tenants, stating that the hot water tank had been replaced and that the contamination was likely due to “user behavior” and “apartment-specific hygiene factors.”
“Spiegel TV” concluded that improvements for tenants in Marl and Bremen are unlikely. This follows a similar report by Radio Bremen last year, which also highlighted the issues without prompting any action.
