Issue of a EUR 300 million corporate bond
> Launch of a corporate bond issue of up to EUR 300 million as a central building block for the financing of the most recent portfolio acquisitions and further growth
> Determination of the interest rate by bookbuilding process
> CHF200 million equity increase is being finalized in parallel
> Market value of the portfolio grows through acquisitions until the end of the year to CHF 2 billion
Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, plans the issue of an unsecured corporate bond with a volume of EUR 300 million. The corporate bond has a planned term of five years and is to be placed exclusively with institutional investors in Europe as well as qualified investors in the United States. The interest rate will be determined by bookbuilding process.
The additional financial resources, which are to be generated by the placement of the bond, are part of the financing structure for the newly acquired real estate portfolios including altogether 10 290 apartments in Germany. The Peach Group finances further parts by mortgages and a capital increase of CHF 200 million. The latter is currently being implemented by means of a mandatory convertible bond in which Ares Real Estate Group participates with CHF 150 million. A further CHF 50 million is being placed to institutional and private investors.
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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. 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 (Chairman), Peter Bodmer, Dr. Christian De Prati, Kurt Hardt and Klaus Schmitz.
For more information, see http://peachproperty.com
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in Australia, Canada, South Africa, Japan, or the United States of America (the “United States”) or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein have not been and will not be registered under U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons, absent such registration, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
This announcement is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons). This announcement is directed only at relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents. Any investment or investment activity to which this announcement relates is available only to relevant persons and will be engaged in only with relevant persons.
The bonds are not intended to be offered, sold or otherwise made available to and should not be offered, sold or otherwise made available to any retail investor in the European Economic Area (“EEA”). For these purposes, a “Retail Investor” means a person who is one (or more) of: (i) a retail client as defined in point (11) of Article 4(1) of MIFID II; (ii) a customer within the meaning of Directive (EU) 2016/97, where that customer would not qualify as a professional client as defined in point (10) of article 4(1) of MIFID II; or (iii) not a Qualified Investor as defined in Regulation (EU) 2017/1129 (the “Prospectus Regulation”). Consequently, no key information document required by Regulation (EU) No 1286/2014 (the “PRIIPs Regulation”) for offering or selling the bonds or otherwise making them available to retail investors in the EEA has been prepared and therefore offering or selling the bonds or otherwise making them available to any retail investor in the EEA may be unlawful under the PRIIPs Regulation.
This announcement contains forward-looking statements, which do not represent facts and are characterized by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of the Peach Property group and are based on current plans, estimates and forecasts which the Peach Property group has made to the best of its knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by the Peach Property group. Actual events or developments may differ materially from those contained in or expressed by such forward-looking statements.