Anchor shareholder Kreissparkasse Biberach increases share from 7.7% to 10.9% by means of a capital increase
-> Capital increase by 164.000 new shares out of conditional capital
-> Kreissparkasse Biberach subscribes a subordinated mandatory convertible at a conversion price of CHF 33.04; conversion date will be 14 April 2020
-> Share of Kreissparkasse Biberach will increase to 10.9% of registered shares based on the number of shares registered in the commercial register
-> Measure will strengthen equity as part of the announced acquisition of a good 3,650 apartments in Germany
-> No further equity measures planned for the acquisition financing
Peach Property Group, an investor specialising in the management of residential property in Germany, has launched a further measure to strengthen its capital structure as part of its growth strategy. As part of a capital increase, the anchor shareholder Kreissparkasse Biberach subscribed to 164,00 new shares in the form of a subordinated mandatory convertible bond. In addition, Kreissparkasse Biberach will acquire another 11.000 shares directly from the holdings of Peach Property Group.
The subordinated convertible bond has a volume of CHF 5.4 Mio. and a term until 14 April 2020. As of this date, the conversion into 164,000 registered shares of Peach Property Group AG (ISIN 11853036/CH0118530366) takes place. The conversion price amounts to CHF 33.04 and is based on the weighted average of the last 30 trading days. Following the conversion and the transfer of the additional shares, Kreissparkasse Biberach’s stake in the Peach Property Group will increase from the current 7.7 percent to 10.9 percent – based on the number of shares registered in the commercial register.
As of 2 October 2019 Peach Property Group AG has already temporarily reduced the conversion price of the 3% convertible hybrid bond listed on the SIX Swiss Exchange (ISIN 38195225/CH0381952255) with a nominal volume of CHF 59 million by CHF 1 from CHF 29.50 to CHF 28.50. The reduction is valid until 18 October 2019. After this deadline, 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 capital increase together with the reduced conversion price of the convertible hybrid bond comprise the two equity measures in connection with the acquisition of more than 3,650 apartments in Germany with an expected closing by the end of 2019. No further equity measures are planned; the remainder of the acquisition financing will be provided through additional debt.
After completion of the purchase, Peach Group’s residential portfolio will increase by 40 percent to approximately 12,450 units with a market value of approximately CHF 1.1 billion. The net asset value (NAV market value) per share is expected to increase to CHF 39.00 (fully diluted) or CHF 45.00 (undiluted) upon completion of the portfolio purchase.
Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased with this reinforced commitment by our anchor shareholder, Kreissparkasse Biberach. It is a strong expression of confidence in our growth strategy. As a result of the current portfolio acquisition in Germany, we will exceed the one billion mark in the value of our portfolio by the end of 2019 and achieve a leap in rental income and net asset value.”
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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