Conversion price of 3% convertible hybrid bond reduced to CHF 28.50 until 18 October
-> Investors of the convertible hybrid bond get the opportunity to convert at preferential conditions
-> The conversion price of the 3% convertible hybrid bond has been reduced by CHF 1.00 from CHF 29.50 to CHF 28.50 from 2 to 18 October 2019
-> The early conversion enables the Company to optimize its financing structure as part of its growth strategy
Peach Property Group, an investor specialising in the management of residential property in Germany, has temporarily reduced the conversion price for its 3% convertible hybrid bond to CHF 28.50. This is intended to optimise the financing structure as part of the growth strategy.
Peach Property Group announced the acquisition of more than 3,650 apartments in Germany around two weeks ago. This transaction, which is expected to close by the end of 2019, will increase the Group’s residential portfolio by 40 percent to approximately 12,450 units with a market value of approximately CHF 1.1 billion. The net asset value (NAV market values) per share is expected to increase to CHF 39.00 (fully diluted) or CHF 45.00 (undiluted) upon completion of the portfolio purchase.
To further optimise its capital structure in light of its recent growth, Peach Property Group AG is temporarily reducing the conversion price of the 3% convertible hybrid bond (PEA22, ISIN CH0381952255) with a nominal value of CHF 59 million listed on the SIX Swiss Exchange by CHF 1.00 from CHF 29.50 to CHF 28.50 between 2 October and 18 October 2019. The reduced price for conversion into registered shares of Peach Property Group AG represents a premium of 15.7 percent for the investor based on yesterday’s closing price of CHF 33.80. After this period expires, the regular conversion price of CHF 29.50 will apply again. The conversion period at the regular conversion price ends on 30 December 2020.
The convertible hybrid bond has an unlimited term, and Peach Property Group AG can terminate it for the first time on 30 September 2022. Through to this date the interest coupon totals 3.00 percent per year.
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About Peach Property Group AG
Peach Property Group is a property investor and developer focused on investments in Germany. 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