Zurich, 8 November 2011 – Peach Property Group Ltd, a leading developer of high-quality residential property in German-speaking Europe, is hosting an investor conference today. On this occasion, for the first time, the Group has quantified expected cash flows from its current development projects. Overall, Peach Property Group expects its projects’ portfolio – broadly based across all stages of development – to generate cash flows to the tune of CHF 170 million over the period from 2012 to 2016. Just under half of this figure – around CHF 80 million – is expected as early as 2012 and 2013, when projects now under construction will be completed.

Development projects forging ahead

Peach Property Group is progressing its development projects in Switzerland, Germany and Austria on schedule. Peach Property Group commenced surface construction works on its Berlin projects “yoo berlin” and “Am Zirkus 1” in September. The ground floors are to be completed by the end of 2011. Currently 39% of the planned sales volume have been registered with the notary at “yoo berlin”, with a further 14% subject to contract. In Hamburg, buyers move into the first completed apartments in Stage One of the “Harvestehuder Weg 36” project in January 2012. Here, 63% of the sales volume is already notarized, with a further 9% subject to contract. As for Stage Two, sales already stand at 36% (25% completed; 11% subject to contract): construction should begin in early 2012. Surface construction work is progressing according to schedule on the “Schooren des Alpes” project in Kappl, near Ischgl (13% of sales completed, 27% subject to contract). The topping-out ceremony will take place on 11 November 2011.

The proportion of properties sold at the “Beach House” project now stands at 43% of planned sales volume (25% completed; 18% subject to contract). Construction goes ahead as soon as around 43% of sales have been completed. The “Aquatica” project was approved in October 2010, though an appeal is currently pending. Further hearings take place in December. If the appeal goes further, the Administrative Court, as the next instance, would have to rule in the matter, and this might be expected by the end of 2012. As the court of last instance, the Federal Supreme Court might be expected to reach a final judgement in 2013. A building permit application for the “Mews & Gardens” project was filed in the summer of 2011, and Peach Property Group expects to obtain this permit before the end of this year. The “Dockside” project, too, has recorded progress: the preservation agreement for the historic building has been finalised with the canton. As soon as it is signed and legally binding, the detailed planning work can commence for submission of the application for a building permit.

Finance assured for current projects

The financing of all projects on sale in Switzerland and Germany is guaranteed. Peach Property Group needs no further equity in order to finish these current projects. Thanks to the expected cash flows from “Harvestehuder Weg 36” Stage One and “Schooren des Alpes” from as early as 2012 plus an equity ratio of 51% on book value (57% on market value basis), Peach Property Group is on a firm financial footing to further pursue its growth strategy. Active management of investment properties serves as an extension of the Group’s strategy, with the focus on total return on investment. In future, steady income from rental properties with attractive yields is expected to even out project returns, which tend to be realised in a concentrated manner.

Quarterly asset reporting enhances transparency

Peach Property Group is planning to publish asset reporting quarterly from 2012 on. This will include detailed data on construction progress and sales levels for individual projects. The aim is to regularly comment on and update the quantitative and qualitative aspects of the portfolio. Peach Property Group thereby intends to enhance the transparency of its reporting at project level.

Outlook

Peach Property Group is concentrating on completing its projects under construction and continues to consider acquisitions of suitable development projects and portfolio properties yielding high income. At present, four projects are at an advanced stage in the acquisition pipeline. On current project level, the aim is to reach various milestones in the next few months. They include the “Peninsula” site in Wädenswil, where permission to build the “Mews & Gardens” project should be obtained, and a ruling on the “Aquatica” appeal. Completion of the surface construction stages of the projects “Harvestehuder Weg 36” (Stage One), “yoo berlin”, “Am Zirkus 1” and “Schooren des Alpes” is expected during 2012 or in the first quarter of 2013.

Dr. Thomas Wolfensberger, CEO of Peach Property Group Ltd, comments: “Peach Property Group has progressed well since its initial public offering one year ago. We have passed major milestones and increased the market value of our property portfolio. Our current development projects will generate significant cash flows in the coming years. In parallel, we have developed our strategy further and acquired our first portfolio of rental properties to lay the foundation for more regular revenue streams in future.”

Peach Property Group’s investors’ conference commences at 10 a.m. today at the Zurich Park Hyatt. The relevant presentation material is available in German for download from the company’s website via the following link:

http://investoren.peachproperty.com/peachestates/pdf/Investors_Day_2011.pdf

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