Author: pp_admin

=> Mr. Arsan is a seasoned professional within the publicly listed German residential real estate space – formerly at Vonovia SE and Adler Group
= Focus on credit rating and financing improvement to assist further growth of Peach Property Group

The Board of Directors of Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, appointed Thorsten Arsan as the new CFO and member of the management of Peach Property Group AG as per September 1, 2021 the latest. Thorsten Arsan will succeed the current CFO, Dr. Marcel Kucher, who will leave the company on the best terms after the AGM end of May 2021.

Thorsten Arsan (a German citizen, age 46) has over 19 years of experience in the German residential real estate sector. He previously spent eight years as Head of Corporate Finance and Deputy Head of Finance & Treasury at Vonovia SE, a DAX-listed residential landlord with 415,000 apartments in Germany, Austria and Sweden. In that role, Mr. Arsan was overseeing all equity- and debt-capital markets transaction. Throughout his tenure, Vonovia issued a total of more than EUR 15bn of unsecured bonds and EUR 2bn of hybrid capital. In addition, he was also responsible for credit rating activities and played a key role in shaping the company’s state of the art financing structure. Mr. Arsan’s current position is Senior Vice President for Finance, Controlling, Investor Relations and M&A with the listed German residential real estate company Adler Group SA where he has led numerous financings totaling EUR 2 bn.

Mr. Arsan’s key focus as Peach Property Group’s CFO will be on the Group’s equity and debt capital markets activities to further support the growth of Peach Property Group and to increase profitability. Particular focus will be to drive lower reducing financing costs and to align the Group’s capital structure to match the expected growth trajectory.

Reto Garzetti, Chairman of the Board of Directors of Peach Property Group AG: “We are delighted to have Thorsten Arsan join Peach as CFO at such an
exciting period of growth for our company. His deep expertise and network will substantially support our expansion strategy over the coming years. In particular, his relevant corporate finance experience in the German residential market will allow us to further optimize our credit rating and financing terms as Peach Property continues to grow.

My sincere thanks go to Dr. Marcel Kucher, who as CFO and member of the management made a very valuable contribution to the initial growth phase of Peach Property Group. The Board of Directors wishes him all the best for the new professional challenge that he will take on after our Annual General Meeting in May 2021.”

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG: “The capital markets, both on the equity and debt side are crucial for the growth and success of Peach Property. Thorsten Arsan is an all-rounder who will further drive Peach Property Group’s best-in-class practices. Peach Property Group will benefit from his many years of experience with, one of Europe’s largest residential companies. We welcome him to the team.”

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The Peach Property Group is a real estate investor and developer with an investment focus 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 http://peachproperty.com

=> Earnings before taxes increased to more than CHF 150 million and NAV per share to more than CHF 50
=> Rental income increased by over 40 percent to CHF 55 million (prior year: CHF 39 million)
=> Real estate portfolio grows to more than 23,000 apartments (prior year: 13,000 apartments) bringing the expected rental income for 2021 to more than CHF 95 million
=> Market value of the portfolio rises to more than CHF 2 billion with an unchanged gross yield of 5.0 percent
=> Significant increase in operating margin from 71 to 75 percent
=> Vacancy ratio in existing portfolio further reduced by around 25 percent to 7.0 percent (prior year 9.3 percent) despite COVID-19
=> LTV decreases to 57.8 percent (prior year: 59.6 percent); NAV per share rises to more than CHF 50 per share despite extraordinary balance sheet growth

Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, has been able to continue its strong, profitable growth during fiscal year 2020 based on preliminary, unaudited figures. Rental income rose by more than 40 percent versus prior year to around CHF 55 million; like-for-like this corresponds to a growth of 4.7 percent of in place rents.

Earnings before taxes increased in 2020 by around 39 percent to more than CHF 150 million, after some CHF 110 million a year before. During the past fiscal year, the acquisition of more than 10,800 residential units in Germany was a significant growth driver. With these purchases in several federal states Peach Property Group strengthened its already existing regional footprint. For the integration, Peach Property builds on its proven digital platform for tenant management and will hence be able to realize significant synergies and economies of scale. To further boost its digital capabilities, SAP S/4HANA was successfully implemented during the reporting period as a uniform and consistent backend system for the areas of tenant accounting, group accounting as well as CAPEX management. The newly acquired portfolios have already been integrated smoothly and rapidly at the end of the year. As a result of further in-sourcing and the associated synergies and economies of scale, the operating margin increased from around 71 to 75 percent. Despite the rise in rental income by more than 40 percent, overhead cost only increased by a disproportionately low rate of 15 percent during the same period.

Including the newly acquired apartments, the portfolio grew by around 86 percent since the end of 2019 to more than 23,000 units with a lettable area of more than 1.5 million square meters. The market value of the real estate portfolio rose significantly because of this substantial growth to more than CHF 2 billion, after CHF 1.1 billion at the end of 2019. The portfolio is valued at around CHF 1,350 per square meter and yields an attractive 5.0 percent (gross).

Focus on tenants; vacancy rate considerably reduced

Apart from the acquisitions, operational progress of the existing portfolio properties also contributed significantly to the growth in 2020. Despite the considerable restrictions due to the COVID-19 pandemic, Peach Property Group was able to sustain and even enhance its tenant-oriented approach. Building on its digital platform and the proprietary Peach App, tenant communication was upheld on a high level without interruption even during the multi-stage lockdown phase last year. Peach Property Group still responds individually to the needs of its tenants and implements them efficiently and rapidly.

Consequently, Peach Property Group also significantly reduced the vacancy ratio in 2020 versus prior year, from 9.3 percent to now just under 7.0 percent for its existing portfolio. Combined with the new acquisitions with its slightly higher vacancy, the vacancy ratio at the end of 2020 was 7.9 percent.

Equity ratio increased, LTV reduced

Alongside the increase in real estate values through its active asset management and acquisitions, Peach Property performed a capital increase in October 2020 with a view to further strengthen its balance sheet. The capital increase was oversubscribed and brought CHF 230 million of fresh capital into the company. Jointly with its strong operational result, this enabled Peach Property Group to further reduce its LTV from 59.6 percent to 57.8 percent based on preliminary numbers. Despite the extraordinary growth in the balance sheet, the equity ratio rose to more than 34.0 percent (after 32.9 percent during the previous year). NAV per share climbed very significantly to more than CHF 50 per share.

Good start into 2021

For the current fiscal year 2021 Peach Property Group is very optimistic. The newly acquired residential units were, as planned, fully recognized in the balance sheet at the end of 2020 and were already integrated into the digital platform on January 3, 2021. Moreover, five new Peach Points were opened at the beginning of the year despite the ongoing lockdown restrictions. Peach now relies on a network of 12 Peach Points, which are all interconnected through a uniform digital tenant platform. The group will also continue to actively manage its apartments with currently around 230 apartments in scheduled refurbishment. Already around 40 percent of those originate from the newly acquired portfolios. Consequently, the Group anticipates further strong growth in rental income in 2021 by an estimated 75 percent to more than CHF 95 million. In parallel to this further growth, the group will achieve economies of scale and expects a further increase in operating margin.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG comments: “Our business model proved to be extremely crisis-proof and successful during the challenging year 2020. The demand for affordable residential space in commuter belts of German conurbations continues to be unbroken. This is reflected in a reduced vacancy ratio and the increase in like-for-like rental income. Last year our focus was again on satisfying the needs of our tenants – thanks to the high degree of digitalization this has worked smoothly also through virtual channels. At the end of 2020 we have not only considerably expanded our property portfolio through the integration of last year’s acquisitions but have also grown out team. With a current headcount of around 170 colleagues, we have started into the new fiscal year with full motivation and intend to continue our growth course in 2021. With Ares Capital Management we have a strong partner at our side, which will allow us to play an even more active role in the German residential property market.”

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The Peach Property Group is a real estate investor and developer with an investment focus 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 http://peachproperty.com

> High demand and target volume successfully achieved
> Term of five years, coupon of 4.375 percent p.a.
> Proceeds to be used to finance the announced portfolio purchases in Germany
> Continuation of the dynamic growth course

The Peach Property Group, an investor specialising in portfolio management in Germany, with a focus on residential real estate, has successfully placed an unsecured corporate bond with a volume of EUR 300 million with institutional investors in Europe and the United States. The bond was oversubscribed, and the target volume of EUR 300 million was successfully achieved. The bond, which was issued at an issue price of 100 percent, has a term of five years. The interest rate is 4.375 percent p.a.

The proceeds from the bond will be used for our further growth in Germany, in particular for the already announced purchases of 10 290 apartments in Germany. As a result, the residential portfolio of Peach Property AG increases to 23 000 apartments until the end of 2020 with a market value of approximately CHF 2 billion.

Dr. Thomas Wolfensberger, CEO of the Peach Property Group: “We are pleased with the high interest of investors in our corporate bond, which is a clear signal of confidence in our business model. Similar to our recently placed CHF 230 million mandatory convertible bond, subscriptions also exceeded our actual target volume for the bond. The additional financial resources provide the necessary means for our dynamic growth course in the German residential properties market. With the recent acquisitions, we have reached a relevant size in that market, and with Ares Management Corporation as an additional anchor shareholder, we have a strong partner at our side.”

Contacts:

Media, Investors and Analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus
+49 69 90 55 05 52 | amuehlhaus@edicto.de

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.

> Placement of the 2.5 percent mandatory convertible bond with a significantly higher volume than originally planned; strengthening of the equity basis
> Ares Management Corporation subscribes to CHF 155 million – high demand among national and international investors
> Mandatory convertible bond is equity and part of the structure to finance the most recent portfolio acquisitions in Germany and the further growth
> Real estate portfolio grows as a result of the most recent purchases to 23 000 apartments with a market value of CHF 2 billion

Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, has successfully placed its mandatory convertible bond with a coupon of 2.5 percent p.a. The mandatory convertible bond generated with CHF 230 million a significantly higher volume than the originally planned CHF 200 million.

The globally operating investor and new anchor shareholder of Peach Property Group AG, Ares Management Corporation, has laid the basis for the equity increase and has participated with around CHF 155 million in the mandatory convertible bond; a further amount of around CHF 75 million was subscribed by national and international investors. The conversion price of the mandatory convertible bond amounts to CHF 42.50 per share; the convertible bond will be converted on a mandatory basis into new registered shares on 30 June 2021 the latest, unless previously converted voluntarily.

The financial resources generated from the placement of the mandatory convertible bond are part of the financing structure for the recently newly acquired real estate portfolio with a total of 10 290 apartments in Germany. Another EUR 300 million for the financing of the dynamic growth course of the company are to be generated from the issue of an unsecured corporate bond which has a term of five years. In addition, part of the growth financing originates from the taking out of mortgages.

As a result of the purchases until the end of the year, the real estate portfolio of Peach Property Group AG increases to 23 000 apartments with a market value of CHF 2 billion.

Contacts:

Media, Investors and Analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

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

> 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.

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus
+49 (0)69 90 55 05 52 | amuehlhaus@edicto.de

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.

> New authorized capital with a nominal amount of CHF 3.3 million for capital increase as the basis for a mandatory convertible bond with a target volume of CHF 200 million.
> Klaus Schmitz, Managing Director of Ares Real Estate Group, elected as additional member of the Board of Directors
> Amendment to the Articles of Association: Registration restrictions for non-Swiss investors are abolished

The shareholders of Peach Property Group AG, an investor specialising in holding investment properties and focusing on residential real estate today accepted all of the agenda items at today’s extraordinary general meeting with a very clear majority in each case of between 80 and 98 percent. A total of 37.5 percent of the listed share capital and 68 percent of the registered voting rights were represented.

Most prominently, the shareholders have decided to create new authorized capital in the nominal amount of CHF 3.3 million for the planned capital increase. The new shares will serve as the basis for the planned issue of a mandatory convertible bond with a target volume of CHF 200 million. The company plans to use the proceeds from the mandatory convertible bond to continue its dynamic growth course and to fully finance the recently announced purchases of 10,290 apartments in Germany.

In addition, the general meeting elected Klaus Schmitz to the Board of Directors of Peach Property Group AG. The Board of Directors will thus be expanded from four to five members. Mr. Schmitz is Managing Director of the Ares Real Estate Group, which subscribed to CHF 150 million of the new mandatory convertible bond and therefore will be the new anchor shareholder with an interest of around 30 percent in Peach Property Group.

The Extraordinary General Meeting also approved the partial amendments of the Articles of Association of Peach Property Group AG. Among others, these amendments remove the registration restrictions for non-Swiss investors (persons abroad within the meaning of the BewG). This means that foreign investors will also be able to become shareholders of Peach Property Group in future.

Full details of the voting results can be found on the company’s website, http:peachproperty.com
.

Contacts

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The 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 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. In the latter area, the Group focuses on A locations and properties with an attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from site evaluation via acquisition to active asset management and the sale or letting of the 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, Kurt Hardt and Klaus Schmitz.

For more information, see http://peachproperty.com

FOR RELEASE IN SWITZERLAND – THIS IS A RESTRICTED COMMUNICATION AND YOU MUST NOT FORWARD IT OR ITS CONTENTS TO ANY PERSON TO WHOM FORWARDING THIS COMMUNICATION IS PROHIBITED BY THE LEGENDS CONTAINED HEREIN.

Not for release, publication or distribution, in whole or in part, directly or indirectly, in the United States of America, Canada, Japan or Australia or any other jurisdiction in which the distribution or release would be unlawful or require registration or any other measures.

> Peach Property Group AG is planning a capital increase with a target volume of CHF 200 million by issuing a subordinated mandatory convertible bond
> A fund managed by the Real Estate Group of Ares Management Corporation (“Ares”), a leading global alternative investment manager with assets under management of USD 165 billion, subscribes to CHF 150 million of the new mandatory convertible bond and becomes a shareholder with an interest of around 30 percent
> Existing shareholders and new investors can subscribe on equal terms
> Mandatory convertible bond with a coupon of 2.5 percent p.a. will obligatorily convert into equity at a conversion price of CHF 42.50 per share no later than 30 June 2021
> Extraordinary General Meeting to approve authorized capital of CHF 3.3 million to create shares necessary for the capital increase
> Klaus Schmitz, Managing Director at Ares, is to be elected as a new member of the Board of Directors of the Peach Property Group AG
> In addition, Peach Property Group AG will also propose to the Extraordinary General Meeting to lift the registration restrictions for non-Swiss investors and to open Peach Property Group to a global investor base
> The Board of Directors and management of Peach Property Group AG welcome Ares’ investment and will work with Ares to drive the long-term growth strategy

Peach Property Group AG, an investor specializing in portfolio management in Germany with a focus on residential properties, plans to strengthen its capital base to finance the recently announced portfolio acquisitions in Germany. A proposal will be made to the Company’s shareholders to increase the equity of Peach Property Group by approximately CHF 200 million by issuing mandatory convertible bonds. CHF 150 million of this total will be subscribed by Ares. The mandatory convertible bond will also be offered to existing shareholders and new investors on the same terms as Ares. The interest coupon is 2.5 percent p.a. and the conversion price is CHF 42.50 per share. The mandatory convertible bond will be converted into new registered shares on 30 June 2021, unless previously converted voluntarily. The shares underlying the mandatory convertible bond are to come from authorized and conditional capital. After conversion of the mandatory convertible bond, Ares will be the largest single shareholder of Peach Property Group AG with an interest of approximately 30 percent.

Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased to welcome Ares as our new anchor shareholder with its extensive investment experience in the German residential market. Alongside our recently announced acquisitions, the capital increase will enable continued growth and efficiencies to drive value for our shareholders. Both Dr. Marcel Kucher (CFO) and I are committed to the company for the long term.”

“Peach Property offers a unique opportunity to invest in one of the more defensive asset classes in Europe today whilst also benefitting from what we believe is an attractive growth trajectory for the company,” said John Ruane, Partner and Co-Head of Ares European Real Estate Equity. “With over 20,000 residential units, Peach Property’s customer orientated business model and digital platform makes it a stand-out player in the German residential market. We look forward to working with the management team to support further growth over the coming years.”

In order to create the necessary share capital to issue the shares as the basis for the mandatory convertible bond, Peach Property Group AG is convening an Extraordinary General Meeting on 12 October 2020. The key item on the agenda will be the creation of new authorised capital with a nominal amount of CHF 3.3 million. The capital increase will be accompanied by credit facilities provided by an international bank consortium, which will enable the recently announced acquisitions of 10,250 apartments in Germany to be fully financed.

The agenda of the EGM will further encompass the election of Klaus Schmitz to the Board of Directors of Peach Property, which will be enlarged from currently four to five members. Klaus Schmitz is a Managing Director in the Ares Real Estate Group and specialises in equity investments in the European real estate sector. He holds a B.Sc. in Economics and Philosophy from the London School of Economics and an M.B.A. from Harvard Business School.

Finally, Peach Property Group AG proposes a partial amendment to its articles of association in order to remove the registration restrictions for non-Swiss investors (persons abroad within the meaning of the “Bewilligungsgesetz, BewG”). This means that foreign investors will also be able to become shareholders of Peach Property Group AG without restrictions in the future, opening the Group to the attractive international investor market.

Due to the current measures to combat Covid-19, the Extraordinary General Meeting will be held without physical participation of the shareholders. Share votes can only be represented by the independent proxy.

Further details can be found in the invitation to the Extraordinary General Meeting, which is also available on the Company’s website https://www.peachproperty.com/en/investoren/corporate-governance/subitem General Meeting.

Contacts:
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The 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 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. In the latter area, the Group focuses on A locations and properties with an attractive architecture and high-level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from site evaluation via acquisition to active asset management and the sale or letting of the 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

About Ares

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager operating integrated businesses across Credit, Private Equity and Real Estate. Ares Management’s investment groups collaborate to deliver innovative investment solutions and consistent and attractive investment returns for fund investors throughout market cycles. Ares Management’s global platform had approximately USD165 billion of assets under management as of June 30, 2020 with approximately 1,400 employees operating across North America, Europe, Asia and Australia, pro forma for the acquisition of SSG Capital Holdings Limited, which closed on July 1, 2020.

For more information, see http://aresmgmt.com

This document constitutes neither an offer nor an advise to buy or invest in the mandatory convertible bond. This document also does not constitute a prospectus in the meaning of the Swiss Code for Financial Services (“Finanzdienstleistungsgesetz”) nor the Swiss Civil Code (“Obligationenrecht”).

> Increase in the portfolio to more than 23,000 units
> Strengthening of existing locations through the acquisition of apartments in Lower Saxony, North Rhine-Westphalia and Rhineland-Palatinate with significant synergy potential
> Rental income increases by 26 percent to CHF 110m target rent or CHF 97m actual rent, respectively
> Significant appreciation potential: vacancy rate of the new portfolio at 10.8 percent – rents below market level
> Closing of the transaction scheduled for the end of 2020

Peach Property Group AG, an investor specialising in portfolio management in Germany with a focus on residential real estate, has entered into a notarial purchase agreement for the acquisition of around 4,800 apartments in Germany and hence increases its portfolio by 26 percent to more than 23,000 residential units.

As a result of the new transaction, the value of the investment portfolio increases already now to the range of the recently published short- to medium-term target of around CHF 2bn. Closing of the transaction is expected to take place at the end of 2020. The parties have agreed not to disclose the seller and the purchase price.

After the acquisition of 5,450 apartments announced at the end of July 2020, Peach Property Group continues its dynamic growth course with the current transaction. The portfolio now acquired has a total residential floor space of around 295,000 sqm. The addition brings the overall residential area of the Peach portfolio to a record 1.5 million sqm. The new portfolio exhibits significant value creation potential, amongst others, from letting currently vacant apartments as well as the fact that the average rent is currently significantly lower that the respective market rent. The residential vacancy rate of the newly acquired portfolio stands at 10.8 percent.

The portfolio generates actual rental income of around CHF 19.9m p.a. (EUR 18.7m); the acquisition boosts the overall actual rents generated of Peach Property Group by 26 percent to more than CHF 97m; the annualised target rental income will rise in parallel to more than CHF 110m p.a.

Around 2,100 apartments or 44 percent of the newly acquired residential units are located in the economically strong triangle between Wolfsburg, Braunschweig as well as Magdeburg and add to the roughly 100 units Peach Property Group already owns in the area.

Another 35 percent of the newly acquired apartments are in North Rhine-Westphalia complementing the existing portfolio. A third focus of the acquisition is Ludwigshafen (Rhineland-Palatinate), with its strong industrial history. With the acquisitions in several federal states Peach Property Group significantly strengthens its already existing core regions. All new apartments will be integrated onto Peach Property Group’s tried and tested, fully digital platform and will hence generate economies of scale and synergies as of day one. In the wake of the expansion two additional Peach Points are planned to be opened.

With regard to the financing of this transaction as well as the one announced at the end of July Peach Property Group has entered into an agreement with an international consortium of banks regarding the debt part and is in very advanced negotiations with institutional investors regarding the equity share; the target value of an LTV for the overall portfolio of less than 60 percent remains intact.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, comments: “We are pleased to have been able to continue to extend our portfolio through one of the largest transactions in our corporate history. In the course of the current year we have already acquired more than 10,000 apartments in Germany and hence underpinned our relevance as a player on this market. With a perspective of more than 23,000 units, which are concentrated in our core regions, we reached a size that allow significant benefits in terms of management, but also in the field of financing. Our fully digital platform and the Peach Point concept allow us to manage the residential portfolio in such a way that generates considerable economies of scale and synergies. The efficiency of the platform was recently proven again, for instance, by the reduction of the vacancies to 8.2 percent and the increase of the “like-for-like” rents by 5.4 percent as per the first half year 2020 – and this in the midst of the COVID-19 pandemic.”

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus,
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

The 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 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. In the latter area, the Group focuses on A locations and properties with an attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from site evaluation via acquisition to active asset management and the sale or letting of the 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

* Rise in rental income by 42 percent to CHF 27.4m; on a like-for-like basis a 5.4 percent increase resulted
* Strong improvement of the operating margin through economies of scale after a successful integration of the 2019 acquisitions; increase in FFO I per share by 20 percent to CHF 0.50
* Decrease in vacancy rate by 12 percent to 8.2 percent
* Profit before taxes of CHF 17.1m
* Fully digitalised platform pays off in Covid 19 crisis
* Increase in the real estate portfolio to CHF 2bn planned in the short to medium term

Peach Property Group AG, an investor specializing in portfolio management in Germany with a focus on residential real estate, has been able to increase the rental income from its portfolio during the first half-year 2020 in the wake of the integration of last year’s acquisitions by around 42 percent to CHF 27.4m versus the comparable prior year period. The rental increase on a like-for-like basis (i.e. without the residential units taken over at the end of 2019 and during the first half-year 2020) reached a record value of 5.4 percent. Despite the Corona pandemic, Peach Property Group was able to significantly decrease vacancies during the first six months of 2020: the vacancy rate has dropped considerably since the end of 2019 by almost 12 percent to currently 8.2 percent of the apartments.

The acquisitions made in 2019 left a particularly positive mark during the first half of 2020: on the basis of a strongly risen residential portfolio, Peach Property Group was able to generate significant economies of scale with a disproportionately low increase in management and maintenance costs.

Increased market value of the portfolio, clear improvement of gross margin and FFO
Peach Property Group has been able to increase the market value of the investment properties to around CHF 1.1bn during the first half-year 2020; this corresponds to a 4.6 percent rise versus the end of 2019. Compared to the same prior year period, the value of the portfolio has grown by around 50 percent.

The first half of the year was, more particularly, marked by efficiency increases: as a result of a further in-sourcing of administration, letting and facility management, the introduction of an overarching SAP platform and the further expansion of digitalisation of small-scale maintenance, the expenditure from lettings rose merely by 10 percent to CHF 6.3 million versus the comparable prior year period. The gross margin rose accordingly from 71 percent to 77 percent. Personnel expenses likewise recorded a disproportionately low increase by 13 percent from CHF 5.1m to CHF 5.8 million at the end of the first half-year 2020. In this area the economies of scale are particularly obvious. The FFO I per diluted share, excluding one-off tax effects, improved by around 20 percent. In absolute terms the diluted FFO I adjusted for tax effects amounted to CHF 0.50 per share; this corresponds to an FFO (funds from operations) return of 2.3 percent on the IFRS NAV.

Peach Property Group achieved during the reporting period a profit before taxes of CHF 17.1m after CHF 25.4m during the first half-year 2019.

Considerable increase in NAV; LTV constant
The positive business development during the reporting period is also reflected by the NAV according to IFRS, which rose during the first half-year 2020 compared to the value at the end of the year by 2.6 percent to CHF 399.5m. The increase versus the prior year period amounted to 28.5 percent. The NAV IFRS per share has likewise gone up from CHF 35.1 during the prior period or CHF 43.3 at the end of the year to CHF 44.0 at the end of June 2020. For the full year Peach Property Group anticipates a further rise in the NAV per share. During the first half-year the LTV amounted to 59.9 percent and for the full year a target corridor below 60 percent is likewise aimed at.

Outlook 2020
Peach Property Group has entered into a purchase and sale agreement in July 2020 for the acquisition of a total of 5,450 new residential units, primarily in Nordrhein-Westfalen und Kaiserslautern. As a result, the portfolio will grow as at the closing of this acquisition at the end of the current year to around CHF 1.5bn. The new real estate portfolio generates actual annual rental income of around CHF 22m. The strategic acquisition enables Peach Property Group, moreover, to continue to significantly increase the FFO and allows the introduction of a sustainable dividend. In the short to medium term Peach Property Groups plans a further increase in investment properties to around CHF 2bn, which would correspond to a total of around 25,000 residential units. To further develop proximity to the tenants despite growth, another three Peach Points are set to open during the second half of 2020.

Dr. Thomas Wolfensberger, CEO, Peach Property Group AG: “The positive development of the first half-year 2020 shows that we have successfully continued to pursue our growth course. With the acquisition of the additional residential units in July, we are, moreover, able to significantly extend our portfolio again and strengthen the presence at our core locations. A major strategic asset for the success of Peach Property Group is our strongly digitalised business model which is geared to efficiency and tenant satisfaction. During the extraordinary phase of the lockdown we continued to be available for our tenants around the clock. Under this aspect our digital platform has perfectly proven its worth. We want to pursue our growth course, and the next target is a value of our portfolio of CHF 2bn.”

The detailed half-year report 2020 is available on the website of the Peach Property Group,http://peachproperty.com, under the section Investors/Publications or using the following link: https://www.peachproperty.com/en/investoren/publications/

Today at 10am CET an analyst and media conference call will take place in English with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.

Dial-in data: +41 44 580 65 22 | PIN Code: 14683742#

The participants in the English conference call can retrieve the presentation under the following link (without audio signal):
https://onlinexperiences.com/scripts/Server.nxp?LASCmd=AI:4;F:QS!10100&ShowUUID=C58199CA-8068-4BE1-B721-082DB93B4484

At 2pm CET another conference call takes place in German, likewise with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.

Dial-in data: +41 44 580 65 22 | PIN Code: 83122223#

The participants in the German conference call can retrieve the presentation under the following link (without audio signal):
https://onlinexperiences.com/Launch/QReg/ShowUUID=96534E66-1521-4B9B-AAEE-FDE8887B8268&LangLocaleID=1031

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus
+49 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG
The 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 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. In the latter area, the Group focuses on A locations and properties with an attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from site evaluation via acquisition to active asset management and the sale or letting of the 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

=> Purchase agreement for portfolio of 5,450 apartments in Germany signed; transaction expected to close at the end of 2020
=> Strategic acquisition will yield substantial increase in NAV per share expected by end of 2020 and position the company for higher FFO generation and a sustainable future dividend
=> Portfolio with residential vacancies of just 8.6 percent; current rental income of around CHF 22 million (EUR 20.7 million) p.a., target rent of the entire portfolio rises by close to CHF 24 million to more than CHF 86 million
=> New portfolio optimally complements existing locations yielding strong additional synergies: Continued focus on NRW with 4,540 apartments plus 910 apartments in Kaiserslautern and other attractive locations
=> Transaction will be funded through appropriate debt and equity mix adhering to target of <60% LTV
=> Company plans to further expand the portfolio to a target size of minimum CHF 2 billion (around 25,000 apartments) in the short to medium term

Peach Property Group AG, an investor specializing in portfolio management in Germany with a focus on residential real estate, is significantly expanding its residential portfolio by 42 percent to approximately 18,300 apartments with a rentable area of 1,190,000 square meters through the acquisition of a large value enhancing portfolio. To this end, a purchase agreement for the acquisition of a total of 5,450 residential units offering living space of 324,000 square meters was notarized. The transaction is expected to close at the end of 2020.
Around 80 percent of the new portfolio, i.e. about 4.540 units, are located in North Rhine-Westphalia, particularly in Recklinghausen, Bochum, Essen and Gelsenkirchen. Another 550 or so apartments are situated in and around Kaiserslautern and 360 apartments in Neubrandenburg. All apartments are in good structural condition and are located in attractive residential areas. The new portfolio exhibits a residential vacancy rate of just 8.6 percent and currently generates an annual net rent of around CHF 22m (EUR 20.7 million). This will bring the total target rental income of the group to more than CHF 86 million p.a., which corresponds to an increase in rental income of around 40 percent.

Peach Property Group is currently evaluating various financing options for the purchase using a combination of equity and debt, in line with our financial policy targeting below 60% LTV.

Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “With this purchase we are implementing another significant growth step which unlocks significant synergies, both operationally as well as financially. The acquisition will significantly increase our residential portfolio and also strengthen our presence in NRW and Kaiserslautern in particular. By integrating the new holdings into our fully digital platform, we will be able to leverage further potential through efficient joint management with our existing apartments in the portfolio. The opening of three additional Peach Points will enable us to provide a high quality of service also to our new tenants. With around 18,300 apartments in the portfolio and a significant increase in current rental income, we will also be considering the inclusion of a sustainable dividend at the end of 2020 to reflect the enhanced stability and scale of our platform. Finally, as a result of the positive business growth and this major acquisition, we also expect a significant increase in the NAV per diluted share in 2020. In the short to medium term we plan to further increase the portfolio to a target size of around CHF 2 billion, corresponding to approximately 25,000 apartments.”

Contacts:

Media, Investors and Analysts

Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany
edicto GmbH, Axel Mühlhaus
+49 (0)69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG:

The Peach Property Group is a real estate investor and developer with an investment focus 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 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 and Kurt Hardt.

You can find more information at http://peachproperty.com