Ad hoc announcement according to article 53 KR

Peach Property Group AG: 2019 pre-tax profits expected to soar to more than CHF 100 million - Launch of a EUR 250 million corporate bond

Zürich (pta006/05.11.2019/07:00 UTC+1) -> 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.


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

Media Germany
edicto GmbH, Axel Mühlhaus, Peggy Kropmanns
+49 (0)69 90 55 05 52 |

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

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.


Emitter: Peach Property Group AG
Neptunstrasse 96
8032 Zürich
Contact Person: Dr. Thomas Wolfensberger and Dr. Marcel Kucher
Phone: +41 44 485 50 00
ISIN(s): CH0118530366 (Share)
Stock Exchange(s): SIX Swiss Exchange; Free Market in Berlin, Frankfurt, Stuttgart