CHF 60 million of 1.75% hybrid warrant bond placed; medium-term target portfolio increased to 11,000 apartments
> Original target volume was increased from CHF 50 to CHF 60 million due to significant subscription volumes shortly after beginning of open placement
> Proceeds to be used for further portfolio expansion and to repay liabilities
> Portfolio expansion progresses faster than previously expected; medium term target portfolio increased to 11,000 apartments
The Board of Directors of Peach Property Group AG, an investor specialising in the management of residential property in Germany, has decided to issue bonds with a total volume of CHF 60 million after having taken note of the final placement result for its 1.75% hybrid warrant bond (“Bond”, Swiss Security No. 41737602; ISIN CH0417376024). Listing for the bonds (cum, ex and option warrants only) on the SIX Swiss Exchange has been applied for and the first day of trading is planned for 25 June 2018.
The hybrid warrant bond has an unlimited term, and Peach Property Group AG can terminate it for the first time on 22 June 2023. The interest coupon amounts to 1.75% through this date and afterwards the prevailing capital market interest rate (minimum zero) plus 9.25% p.a. With each bond with a nominal value of CHF 1,000 the bondholder receives 4 warrants for the purchase of registered shares of Peach Property Group AG. Every warrant entitles the holder to subscribe for one registered share at an exercise price of CHF 25.00 during the exercise period from 25 June 2018 up to and including 25 June 2021.
Peach Property Group intends to use the newly raised funds of CHF 60 million for the further extension of its existing real estate portfolio in Germany and for the redemption of higher-interest liabilities. Peach Property Group has recently notarised the acquisition of 1,066 residential units in Baden-Württemberg and intends to continue expanding its real estate portfolio. This is progressing faster than had originally been forecast. Hence, its goal for the medium term the real estate portfolio has been increased to around 11,000 apartments – up from the 9,000 units previously envisaged. At present, the investment portfolio currently totals more than 8,000 units with a rental area of 518,000 square meters and annual target rent of more than CHF 40 million.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased with the placement volume for our new bond, and also the trust that both our shareholders and new investors have shown. Based on the now available financing and the market opportunities available we have increased our medium term operational target to 11,000 residential units in our portfolio.”
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Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
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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). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.
For more information, see http://peachproperty.com