OREANDA-NEWS. The Management Board of Peach Property Group AG, a leading investor in the residential and commercial real estate sectors, has resolved to issue a subordinated bond (“hybrid bond”, ISIN: CH0305711647). The subscription period as part of the public offer in Switzerland starts on 2 December 2015 and is expected to end on 11 December 2015 (noon), with earlier closing also possible. In addition, there will be a private placement with select European investors. The target volume for the hybrid bond is CHF 25 million. In the event of greater demand, it is possible to increase the volume to CHF 50 million. The hybrid bond has an unlimited term, and termination by Peach Property Group is possible for the first time on 15 December 2015. The interest coupon is 5.00% p.a. through 15 December 2018, and 3-month Libor plus 9.25% thereafter. The hybrid bond will be listed on the SIX Swiss Exchange from 15 December 2015. 

As a result of the roadshow for the group’s subsidiary Peach Property Group (Deutschland) AG, institutional investors from Switzerland in particular have announced very concrete interest in the structure of a hybrid bond at group level which has now been selected. As a result, the company is confident that the it will be able to place the planned volume.

Peach Property Group plans to use the proceeds from the hybrid bond to refinance the group’s liabilities and to expand its portfolio of investment properties in Germany in particular. The company believes that there continue to be attractive, profitable opportunities for investment on the market in Germany. As per June 30, 2015 Peach Property Group has a portfolio of both residential and commercial investment properties in Germany and Switzerland with a market value of CHF 200 million and a development portfolio with a market value of CHF 139 million. The real estate assets not encumbered with mortgages and thus uncollateralized real estate assets totals around CHF 170 million. Over the medium term, the investment focus is on Germany in particular, and more precisely on North Rhine-Westphalia, Lower Saxony and Hessen.

Over the past few years, the focus of the overall portfolio has increasingly shifted towards investment properties; as of the end of September 2015 around 63% of the portfolio was invested in investment properties according to the asset reporting published each quarter. Over the medium term, the company aims to hold 75% of its total portfolio in real estate. As an active portfolio manager, in so doing the Peach Property Group aims to constantly increase the value of its investment portfolio via active asset management.

About Peach Property Group AG

Peach Property Group AG is a property investor and developer focused on investments in Switzerland and Germany. The portfolio includes an increasing number of investment properties that are designed to generate sustained income as well as attractive residential development properties. The Group’s activities cover the entire value chain, from site evaluation to project planning, implementation and marketing. In the investment segment, the Group is focused on properties with a potential for achieving attractive yields based on active asset management – typically secondary locations in the catchment area of urban agglomerations. In the development segment, the Group concentrates on exceptional locations and properties with high-end specifications and amenities that meet the requirements of a demanding clientele.

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).