Author: pp_admin

The shareholders of Peach Property Group AG, an investor specialising in holding German investment properties focusing on residential real estate today accepted all of the agenda items at today’s general meeting in Zurich with a clear majority. A total of around 40 percent of the share capital respectively 72 percent of the registered voting rights was present at the general meeting, which was held online this year. Based on Art. 6a of Ordinance 2 on Measures to Combat Covid-19, the voters were represented exclusively by the independent proxy.

Among other things, the shareholders decided by approximately 71 percent of the votes cast to increase the conditional capital by around CHF 1.69 million to a new total of CHF 3.30 million and by around 93 percent to carry forward in full the net result of the 2019 financial year. Both measures serve to support the planned further growth of the company. Thanks to its focus on residential properties with moderate rents in stable B-cities in western Germany, Peach Property Group considers itself very well positioned, even in the current market environment, which is dominated by the Covid-19 pandemic. Accordingly, no significant negative effects on business activities have been recorded to date. The occupancy rate and rental income continue to move according to plan, and the reduction of vacancies has also been further advanced in recent months.

In addition, the General Meeting confirmed the remuneration of the Supervisory Board and the management and reappointed the Chairman of the supervisory board Reto Garzetti alongside with the other board members Peter Bodmer, Dr. Christian De Prati and Kurt Hardt for a further year in office.

The minutes of the General Meeting with detailed voting results will be made available on the company’s website shortly.

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, Peggy Kropmanns
+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 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

-> Earnings after taxes soar to CHF 91.0 million (previous year: CHF 45.3 million)
-> Actual rental income up significantly to CHF 38.9 million (previous year: CHF 29.6 million); Vacancies fall by 26 percent to 9.3 percent (previous year: 12.5 percent)
-> Net asset value (NAV) per share increases substantially to CHF 45.11 (previous year: CHF 36.36)
-> Portfolio market value increases by over 50 percent to more than CHF 1.1 billion (previous year: CHF 0.7 billion)
-> Housing stock currently stands at around 13,000 units (up 42 percent year on year)
-> Living space at affordable rents and a high degree of digitalization are Peach Property Group’s hallmarks
-> Further positive portfolio growth and rising rental income expected in 2020
-> Current Covid-19 crisis without negative effects on the Group to date

Peach Property Group, an investor specialising in the management of residential property in Germany, is reporting a very positive financial year 2019 with new record-breaking profits, a further increase in rental income and extensive additions to its portfolio. Peach Property Group enjoys a very solid financial base, a demand-driven portfolio in the affordable rent range and a highly digitalised business model, and thus considers itself well positioned for a wide variety of market scenarios.

The final figures for the 2019 financial year correspond to the preliminary figures already reported on February 11, 2020 or are slightly better in some cases. In 2019, profit before taxes in accordance with IFRS was CHF 109.7 million, around 93 percent above the previous year’s figure of CHF 56.9 million. Peach Property Group recorded profit after tax of CHF 91.0 million (after CHF 45.3 million in the previous year). This is the highest profit in the Group’s history.

Peach Property Group was able to further expand its residential real estate portfolio during the financial year 2019. At the end of the year the portfolio comprised 12,424 residential units compared with 8,442 a year earlier. This expansion was primarily driven by the acquisition of a portfolio of 3,672 apartments at locations in North Rhine-Westphalia, Kaiserslautern and Bielefeld, which generates annual actual rental income of some CHF 14.5 million. As ownership of these apartments was only transferred on December 31, 2019, the rent from the new portfolio is not yet included in the rental income for 2019. Actual rental income in 2019 amounted to CHF 38.9 million, exceeding the previous year’s figure of CHF 29.6 million by around 31 percent. Peach Property Group’s number of residential units has increased further to a current total of around 13,000 units with total space of around 864,000 square meters thanks to the transfer of ownership of a further portfolio with 528 residential units in the first quarter 2020.

The market value of Peach Property Group’s real estate portfolio was CHF 1.1 billion as of December 31, 2019, compared to CHF 0.7 billion a year earlier. Both the portfolio expansion and the value-enhancing refurbishment work in the portfolio contributed to the positive performance. In particular, rental income on a like-for-like basis rose by 4.5 percent over the course of the year, and the vacancy rate of apartments offered on the market was reduced to only 2.3 percent in 2019. Including the letting reserve, which is being continuously reduced by ongoing renovation work, the total vacancy rate in 2019 was 9.3 percent – a drop of 26 percent compared to the previous year.
Net asset value (NAV) at market values increased by around 28 percent to CHF 401.3 million at the end of 2019, compared to CHF 314.1 million a year earlier. Accordingly, NAV per share rose to CHF 45.11 from CHF 36.36. Despite the expansion of the portfolio and total assets, the Group’s equity ratio was 32.9 percent based on market values and 32.3 percent according to IFRS. In the previous year the figures were 37.7 percent and 36.7 percent respectively.

For the current fiscal year 2020, Peach Property Group expects a further increase in rental income as well as further growth of the property portfolio and the Group plans to take advantage of market opportunities as they arise. The Group is currently not feeling any negative effects of the current Covid-19 crisis on its business. Rental income, occupancy rate and rent losses are currently on target.

Moreover, with its real estate portfolio, Peach Property Group believes that it is well equipped for a temporary slowdown in the German economy. Within the residential real estate sector, which is less susceptible to economic cycles, Peach Property Group offers an attractive product where tenants receive good quality living at affordable rents. At present, the monthly net rent without heating costs per square metre in the portfolio averages EUR 5.37, which represents the medium to lower rental segment and still below the average market level in the respective locations. In addition, Peach Property Group benefits from the high level of digitization in all business areas that has been implemented in recent years. The Group combines social media channels with its own tenant app and a web-based tenant portal. Using these tools, it is possible to arrange viewing appointments online as well as to communicate digitally with the property management, which is very convenient, especially in the current situation with the Covid-19 virus. Digital connections with local partner companies allows maintenance to be implemented quickly and efficiently without further interaction. On average, tenant enquiries are answered in less than 24 hours. The extensive digital offer is supplemented by the possibility of direct personal contact, for example through the now seven Peach Points in central locations of the individual sites.

Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “Financial year 2019 was a quantum leap for our Group. In addition to our business figures, which show a near doubling of pre-tax profit, this is particularly evident from the expansion of our portfolio and the strategic progress we have made in all business areas. We have further optimised our portfolio through active asset management and are financed in a balanced way. A large part of our portfolio is not encumbered with loans and the next capital market maturity of a liability is not for almost three years. Together with excellent internal financing from rental income, we have a very sound financial basis. Above all, however, we focus on the needs of our tenants, who are at the heart of our efforts, especially in these challenging times. Housing is currently taking on an even more central role and we want to do our part to ensure that the tenants in our portfolio have the best possible experience”

The detailed 2019 annual report is available on the Peach Property Group website, http://peachproperty.com, under the heading Investors/Publications or under the following link http://peachproperty.com/en/investoren/publications/
An analyst and media conference call will be held today at 10:00 a.m. in English with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.

Dial-in data: +41 44 580 65 22 | PIN Code: 71879158#

Participants for the English conference call can access the presentation (without audio signal) under the following link:
http://event.on24.com/wcc/r/2234165-1/F3E3DB58D299317DD7C1CBA6D8E6EBEF

A further analyst and media conference call will be held today at 4:00 p.m. in German, also with CEO Dr. Thomas Wolfensberger and CFO Dr. Marcel Kucher.

Dial-in data: +41 44 580 65 22 | PIN-Code: 58393500#

Participants for the German conference call can access the presentation (without audio signal) under the following link:
http://event.on24.com/wcc/r/2233467-1/0E5EDB1F66A12916B3E427E05A6647E6?partnerref=rss-events

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, Peggy Kropmanns
+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 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

* Peach Property Group nearly doubles 2019 earnings before taxes to around CHF 109 million
* Market value of the real estate portfolio as of 31.12.2019 increases by more than 50 percent to CHF 1.1 billion
* Actual rental income amount to around CHF 39 million – an increase of 31 percent versus prior year
* Net Asset Value (NAV) per share as at 31.12.2019 of around CHF 44 (after CHF 36.70 as per end of 2018)
* Vacancies significantly reduced from 12.5 percent at the end of 2018 to now 9.3 percent
* Residential portfolio expanded in the course of 2019 by 47 percent to around 12,450 units; integration of another 528 apartments acquired in 2019 by the end of Q1 2020
* Positive outlook with an anticipated growth in actual rent for 2020 of at least 40 percent to more than CHF 55 million

Peach Property Group, an investor with a focus on residential real estate in Germany, posts a new record high for earnings before taxes based on preliminary, unaudited numbers. Amounting to around CHF 109 million, earnings before taxes were about 90% above the prior year level of CHF 56.9 million. Growth drivers were a significant portfolio extension, substantial improvements of the portfolio properties as well as optimised tenant-oriented services. According to first data, actual rental income rose in 2019 by about 31 percent to almost CHF 39 million on a year-on-year basis. The portfolio acquired in September 2019 with 3,672 apartments and an annual actual rent of around CHF 14.5 million is not yet included, since the transaction was only completed on December 31, 2019. The closing of another portfolio of 528 apartments acquired at the end of 2019 with an actual rent of CHF 2.4 million is anticipated to take place in the course of the first quarter 2020. Together with these apartments, the portfolio has grown since the end of 2018 by around 53 percent to now almost 13,000 units with a lettable area of more than 866,000 m2 and an annual target rental income of more than CHF 65 million.

As a result of the positive development and the acquisitions, the market value of the real estate portfolio has significantly increased and amounted to around CHF 1.1 billion at the end of 2019 after CHF 0.7 billion a year before. This growth was driven not only by acquisitions but also by operational progress concerning the portfolio properties. As a result of the enhanced tenant-oriented management and the improved tenant services out of currently seven tenant shops, the so called Peach Points, as well as the expansion of the digital communication with the tenants, the services and investments were even more targeted towards actual tenant needs and implemented even more efficiently. Consequently, Peach Property Group has also been able to significantly reduce vacancies in 2019 to 9.3 from 12.5 percent a year ago. Excluding the apartments in renovation or earmarked to be renovated, the effective vacancies amount to a low 2.0 percent. The increase in efficiency in 2019 is also underpinned by an improved operating margin of 73 versus 71 percent a year ago.

Peach Property Group has also significantly increased its equity as per the end of financial year 2019 according to preliminary numbers, and the Net Asset Value at market values was improved to around CHF 44 per share from CHF 36.70 at the end of the previous year. Despite the significant increase of the total balance sheet due to the strong portfolio growth, the equity ratio at market value is expected to amount to around 32 percent as of 31.12.2019 – after 36.7 percent as per the end of 2018.

Peach Property Group is confident for the year 2020. Following the integration of the portfolios acquired in 2019, the actual rent will increase by at least 40% to over CHF 55 million. In addition, Peach Property Group anticipates further operational improvements and has also continued to improve its financial clout through a broader positioning on the capital market.

Dr. Thomas Wolfensberger, CEO of Peach Property Group AG: “Peach Property Group has grown into new spheres in 2019 in any aspect. With a portfolio of now around CHF 1.1. billion, which we serve out of seven Peach Points, a top motivated workforce of around 90 people and our highly digital service model we have now grown capabilities that will offer new interesting opportunities for profitable growth going forward. As before, our tenants stand in the centre of all of our services and activities.”

The Peach Property Group will publish its final annual figures 2019 on 31 March 2020.

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, Peggy Kropmanns
+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 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

-> Purchase contract for residential portfolio with 528 units notarised; focus on Essen and Dortmund
-> New portfolio with annual actual rental income of CHF 2.4 million and a vacancy rate of 9.7 percent
-> Closing expected by the end of Q1 2020
-> Target rent for the group lifts by 4.1 percent to more than CHF 66 million

Peach Property Group, an investor specialising in the management of residential property in Germany, has notarised a purchase agreement for 528 apartments in North-Rhine Westphalia. The transaction, which is expected to be closing by the end of the first quarter of 2020, will increase the Group’s total residential portfolio by a good 4 percent from around 12,450 to around 12,975 units. The rentable area will also increase by around 4 percent or 36,000 square meters to over 866,000 square meters. This figures already include the acquisition of more than 3,650 apartments announced in September, which will be completed by the end of 2019. Peach Property Group’s annual target rental income will increase to around CHF 66.1 million p.a. as a result of the latest transaction. It has been agreed not to disclose the seller or the purchase price.

The majority of the newly acquired portfolio, which also includes a small proportion of commercial space with around 500 square metres, is located in Essen and Dortmund, both cities with over 500,000 inhabitants. With a vacancy rate of currently 9.7 percent, it currently generates an annual net rent (excluding heating and auxiliary costs) of CHF 2.4 million (EUR 2.2 million). The buildings and apartments are in good condition and the Peach Property Group expects that the tenant-oriented management approach and the strong local presence with its Peach Points will enable it to significantly reduce vacancies in the short term.

Dr. Thomas Wolfensberger, Peach Property Group’s CEO: “The new apartments are the perfect way to expand our real estate portfolio. The acquisition allows us to expand our presence in the two largest B-cities in NRW and optimally leverages our existing Peach Points in Oberhausen and Gelsenkirchen. We continue to care for our new tenants in the best possible way and see substantial potential going forward.”

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, Peggy Kropmanns
+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 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

-> Placement with institutional investors in Europe and the USA
-> Term of 3 1/4 years, coupon of 3.5 percent p.a.
-> Bond receives Ba3 rating from Moody’s as well as BB- from Standard & Poor’s and Fitch
-> Funds to finance the previously announced portfolio acquisition in Germany and for further growth

Peach Property Group, an investor specialising in the management of residential property in Germany, has successfully placed its corporate bond with a volume of EUR 250 million with institutional investors in Europe and the USA. The bond, which was placed at an issue price of 99.238 percent, has a term of 3 1/4 years through February 15, 2023 and bears a coupon of 3.5 percent p.a. It was rated Ba3 by Moody’s as well as BB- by Standard & Poor’s and Fitch.

The listing of the corporate bond is planned, and an application has been filed for listing on TISE – The International Stock Exchange – on the Official List. The proceeds from the bond will be used to finance the further growth in Germany – in particular the previously announced acquisition of a real estate portfolio comprising 3,650 apartments. This acquisition will increase Peach Property’s residential portfolio by around 40 percent to more than 12,450 apartments with a market value of just over CHF 1.1 billion by the end of 2019.

Dr. Thomas Wolfensberger, Peach Property Group’s CEO, commented: “We are very pleased with the strong interest from investors in our corporate bond and the trust they placed in our company. This marks a further milestone in the implementation of our growth strategy, for which we have now created additional financial scope.”

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, Peggy Kropmanns
+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 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

This announcement does not constitute an offer or a solicitation of an offer to purchase for securities in the United States of America, Australia, Canada, Japan or any other jurisdiction in which an offer is restricted by law. The securities referred to in this publication have not and will not be registered under the provisions of the U.S. Securities Act of 1933 in its current applicable version (“U.S. Securities Act) and may not be sold or offered for sale in the United States of America for the account of or to US persons without prior registration under the U.S. Securities Act, except in a transaction that is not subject to, or exempt from, the provisions of the Securities Act.

This announcement is directed at or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (“Order”) or (ii) high net worth entities falling within Article 49(2)(a) to (d) of the Order (all such persons being referred to as “relevant persons”). This notice is addressed only to relevant persons. Other persons should not act or rely on this announcement or any of its contents.

The bonds are not intended to be offered, sold or otherwise made available to retail investors in the European Economic Area (‘EEA’) and should not be offered, sold or otherwise made available to retail investors in the EEA. For the purposes of this provision, the term “retail investor” means a person who meets one (or more) of the following criteria: (i) he is a retail investor within the meaning of Article 4(1) No. 11 of MiFID II; (ii) he is a client within the meaning of Directive (EU) 2016/97 unless such client is a professional client within the meaning of Article 4(1) No. 10 of MiFID II; or (iii) he is not a qualified investor within the meaning of Regulation (EU) 2017/1129 (“EU Prospectus Regulation”). Accordingly, no basic information sheet required under Regulation (EU) No 1286/2014 (the “PRIIPS Regulation”) has been produced for the offer or sale or other provision of bonds to retail investors in the EEA; therefore, the offer or sale or other provision of bonds to retail investors in the EEA may be unlawful under the PRIIPS Regulation.

This document contains forward-looking statements, which are not statements of fact and are identified by the words “expect”, “believe”, “estimate”, “intend”, “aim”, “assume” and similar expressions. These statements reflect the intentions, beliefs or current expectations and assumptions of the Peach Property Group and are based on current plans, estimates and projections made by the Peach Property Group to the best of its knowledge, but are not guarantees of future performance. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and are usually beyond the control of the Peach Property Group. Actual events or developments may differ materially from those discussed or implied by such forward-looking statements.

-> Earnings before taxes in the fiscal year 2019 expected to increase to more than CHF 100 million, an increase of 75 percent year-on-year
-> Peach Property Group’s share capital has improved substantially with the conversion of CHF 27.8 million of the hybrid warrant bond (approx. 50% of the amount outstanding under the bond) into shares
-> In the medium term, actual rental income targeted to increase to CHF 60 million due to the integration of the new portfolio
-> Launch of a corporate bond for EUR 250 million with a three and a quarter-year term
-> NAV (market value) per share expected to exceed CHF 40.00 by year-end 2019

Peach Property Group, an investor specializing in the management of residential property in Germany, is expecting an increase in its pre-tax profits to more than CHF 100 million for the fiscal year 2019, significantly exceeding expectations. Compared to the previous year’s pre-tax-profits of CHF 56.9 million this equals an increase of approximately 75 percent. As a result of the acquisition of 3,650 apartments in Germany, as announced in September 2019, Peach Property Group’s residential portfolio will increase to approximately 12,450 apartments with a total market value of CHF 1.1 billion, an increase of more than 40 percent compared to year-end 2018. Accordingly, actual rental income is expected to also significantly increase to around CHF 60 million in the medium term.

The acquisition will be financed through a mixture of debt and equity in line with Peach Property Group’s financing strategy to maintain strong growth and solid capitalization. On the equity side, the key element consists of the conversion of CHF 27.8 million of the 3% hybrid warrant bond (PEA22, ISIN CH0381952255) – alongside the issuance of a subordinated mandatory convertible bond with a volume of CHF 5.4 million subscribed by Kreissparkasse Biberach. The number of outstanding shares of Peach Property Group AG will thus increase by approximately one million to a new total of around 6.6 million shares.

On the debt side, Peach Property Group is launching today a EUR 250 million unsecured corporate bond. The bond has a term of three and one quarter years and is to be placed with institutional investors in Europe and qualified institutional buyers in the United States. Interest will be set through a bookbuilding process.

Peach Property expects to finance the acquisition fully through these debt and equity arrangements and, post-acquisition, expects the net asset value (NAV market value) per share to increase to more than CHF 40.00 by year-end 2019.

Peach Property Group is continuing to focus on further developing its investment portfolio to create value, optimizing its rental levels and expanding its tenant services to include the management of all the apartments in its portfolio with its own, tenant-centered portfolio management. For example, new Peach Points are planned to be opened in Gelsenkirchen and Erkrath, and staff levels are to be increased at the existing tenant stores in Kaiserslautern, Oberhausen and Bielefeld.

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, Peggy Kropmanns
+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 and Kurt Hardt.

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

IMPORTANT NOTICE:
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.

-> 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.”

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, Peggy Kropmanns
+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 (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.

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

-> 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.

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, Peggy Kropmanns
+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 (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.

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

-> Peach Property’s portfolio grows from just under 8,800 to almost 12,500 apartments as a result of the transaction
-> Lettable living space increases by 221,000 to more than 785,000 square meters
-> Newly acquired portfolio generates around CHF 14.4 million in actual rental income per annum; target rent of the entire Peach portfolio rises by almost CHF 16 million to more than CHF 62 million
-> Strengthening of existing locations through the acquisition of properties in the Ruhr area, Bielefeld and Kaiserslautern
-> Portfolio has further substantial value creation potential through active portfolio management
-> With the acquisition, Peach substantially exceeds previously announced medium term goal of 11,000 apartments; it will however continue its substance-oriented growth

Peach Property Group, an investor specialising in the management of residential property in Germany, has further expanded its residential real estate holdings by acquiring 3,672 apartments. The corresponding purchase agreements were notarized, with closing of the transaction scheduled for the end of December 2019. It has been agreed not to disclose the seller or purchase price. The acquisition will be financed through a mix of debt and equity in line with Peach Property Group’s financing strategy to maintain a path of growth and solid capitalization.

The portfolio comprises apartments in the Ruhr area – in Bochum, Essen, Gelsenkirchen and Velbert – as well as in Bielefeld and Kaiserslautern and thus strengthens Peach Property existing regional locations allowing for further economies of scale in the management. The newly acquired portfolio generates an annual net rent of around CHF 14.4 million (EUR 13.3 million) on roughly 221,000 square meters of living space. The current rent level is in several locations significantly below the current market level and the lettings of the past 12 months. In addition, there is considerable upside potential by optimising the vacancy rate in the portfolio, which is currently just under 9 percent. Peach Property believes that it will be able to reduce the vacancy rate within one to two years of closing, moving closer towards market vacancy rates of between 3 and 5 percent. In addition to other elements, an important factor to achieve this will be the tenant-centric “one touch” portfolio management approach, which Peach Property is already successfully implementing to reduce vacancies in its existing portfolio. Among others, new Peach Points in Gelsenkirchen and Erkrath as well as additional personnel in the Peach Points in Kaiserslautern, Oberhausen and Bielefeld are planned in order to be able to care for our additional tenants.

The transaction will increase Peach Property’s residential portfolio to more than 12,450 units with a market value of around CHF 1.1 billion by the end of 2019. The lettable area increases by 221.000 square metres to 785.000 square meters and the potential rent of the portfolio by approximately CHF 16 Mio. to more than CHF 62 Mio.. Peach Property expects a net asset value (NAV at market value) per share in the area of CHF 39.00 (fully diluted) and CHF 45.00 (undiluted) and plans to continue its substance-oriented growth in the coming years.

Dr. Thomas Wolfensberger, CEO of the Peach Property Group: “With the current acquisition our portfolio size increases by over 40 percent to more than one billion, which makes Peach attractive to additional investors. In doing so we perfectly complement our existing locations which allows us to further build on our core strengths of tenant focus and leverage our highly digital platform. The growth is accompanied by a significant surge in net asset value at the end of the year. In the coming years, we will to continue to grow dynamically and will remain committed to our investment focus on attractive residential properties, typically in German B-cities in the vicinity of major urban agglomerations.”

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, Peggy Kropmanns
+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 (President), Peter Bodmer, Dr. Christian De Prati and Kurt Hardt.

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