Conclusion of EUR 100 million RCF for increased flexibility, interest expenses further reduced following refinancing
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Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, successfully concluded its first revolving credit facility (RCF) of EUR 100 million. The RCF was provided by the three major international banks, J.P. Morgan, BNP Paribas and Deutsche Bank. It is the first revolving credit facility of Peach Property Group and serves to increase financial flexibility and significantly enhance the efficiency of the Group’s liquidity management. The maturity is three years with an option to extend for a further year.
Peach Property Group reduced overall average interest costs to 2.5 percent in 2022 (from 2.7 percent as of December 31, 2021) through a package of refinancing measures. Annualized interest savings are approximately CHF 2.8 million. The reduction in average interest costs was achieved through the placement of an unsecured promissory note, the conclusion of a secured bank financing, and the restructuring of existing liabilities.
The proceeds from the new financial instruments were used to early settle a EUR 60 million unsecured bank financing which will mature in June 2022, and to buy back EUR 50 million of a EUR 250 million unsecured corporate bond. The remaining outstanding principle of EUR 200 million will mature in February 2023. No further financing falls due before February 2023.
“The revolving credit facility provides us with further financial flexibility to continue our opportunity-driven growth and investment strategy. The new financing option underlines that Peach Property Group has sufficient access to capital, even amid the current challenging financial market environment. We have already successfully reduced our average interest costs in the current financial year through various refinancing measures. At the same time, we are working towards our medium-term goal of achieving a loan-to-value ratio (LTV) of below 50 percent and to further reduce interest costs,” commented Thorsten Arsan, CFO of Peach Property Group AG.
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Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
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About Peach Property Group AG
The Peach Property Group is a real estate investor with an investment focus on residential rental properties in Germany. The Group stands for many years of experience, competence and quality. Innovative solutions for state-of-the-art living needs, strong partnerships and a broad value chain round off the profile. The portfolio consists of high-yield portfolio properties, typically in B-cities in the catchment area of conurbations. In addition, the Group develops real estate for its own portfolio or for condominium marketing. In the latter area, the Group concentrates on A locations and properties with attractive architecture and upscale furnishings for an international clientele. Its activities span the entire value chain from evaluating locations through to acquisitions and also active asset management and property sales or lettings.
Peach Property Group AG has its registered office in Zurich and the Group is headquartered in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer, Dr. Christian De Prati, Kurt Hardt and Klaus Schmitz.
More information at https://peachproperty.com/en/