Peach Property Group AG / Key word(s): Bond
15.12.2011 06:57

Release of an ad hoc announcement pursuant to Art. 53 KR

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Press release 

Peach Property Group receives a BBB- investment-grade rating for its corporate bond

- Prospectus addendum offers increased security and transparency
- BBB- investment-grade rating awarded by Creditreform Rating AG
- Inclusion in the Entry Standard of Deutsche Börse AG
  - Issuing volume of up to EUR 50 million 

  - Coupon of 6.6% p.a., duration of five years 

Zurich, 15 December 2011 - To satisfy the increased demands of the capital markets for security and transparency, the Peach Property Group, one of the leading developers of top-quality residential property in the German-speaking part of Europe, provided an addendum to the issue prospectus for its corporate bond which was launched on 1 July 2011. This was approved by the Federal Financial Supervisory Authority (BaFin) on 14 December 2011. The accredited rating agency Creditreform Rating AG awarded the corporate bond a BBB- investment-grade rating.
Peach Property Group is filing an application for inclusion of the bond in the Entry Standard of the German Stock Exchange. The inclusion should be approved within the next few days. equinet Bank AG will act as the listing partner, specialist and designated sponsor for the bond. The bond is being placed by Sapia Partners LLP, an independent corporate finance company specialised in real estate transactions, with headquarters in London and a subsidiary in Berlin.

The bond is issued by Peach Property Group (Deutschland) GmbH, a German subsidiary of the Peach Property Group. The bond offers an annual interest rate of 6.6%, has a duration of five years (until 30 June 2016) and an issue volume of up to EUR 50 million. The subscription deadline is 30 June 2012 (ISIN DE000A1KQ8K4, security identification number A1KQ8K).
The funds raised from the bond will be used to finance the future growth of the Peach Property Group on the German market. The priority is the build-up of investment properties to smoothen earnings volatility of development properties, while also financing existing and new projects. In July 2011, the company acquired its first investment property portfolio in Munster near Hamburg, and the purchase of a second residential and business portfolio in Erkrath near Düsseldorf will soon be completed. At notarisation levels of between 41% and 63%, all the German development projects of the Peach Property Group are currently under construction.
The on-going development projects in the prime locations in Hamburg and Berlin are being financed with internal funds totalling EUR 65 million, serving as consolidated economic equity capital for bondholders. Thanks to the addendum, the bond offers the following additional securities and guarantees in comparison to straight bonds which are customary on the market:

- Relating to the consolidated total assets of the guarantor, external financing through third parties is limited to a maximum share of 75%.
- To ensure the diversification of the portfolio, no more than EUR 10 million of the proceeds from the bond issue will be used for individual     properties.

- The consolidated property portfolio of the guarantor comprises at least     70% investment properties.

- A fund-utilisation trustee is responsible for administering/supervising the issue proceeds and for observing the financial covenants.
- To ensure maximum transparency, the issuer publishes a quarterly asset report on the website of the Peach Property Group.
For detailed information concerning the bond and the securities prospectus with addendum, visit www.peachestates.com/anleihe.
Contacts

Investors and analysts:
Peach Property Group AG
Dr Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 (0)44 485 50 00 
investors@peachestates.com

Sapia Partners LLP
Jurgen Gebhard
+44 (0)207 104 2140 (London)
+49 (0)30 398 2135 81 (Berlin)
jgebhard@sapiapartners.com

Media:
Siro Barino, Barino Consulting
+41 (0)79 335 24 24
info@barino.ch

About Peach Property Group
Peach Property Group Ltd is a leading developer in the field of top-quality residential property in the German-speaking part of Europe. Activities cover the entire value chain of property development, from site surveying to project planning, implementation and marketing. Properties developed by Peach Property Group Ltd are located on exceptional sites in or near city centres and holiday resorts. Premier amenities meet the requirements of a demanding clientele.

Peach Property Group Ltd currently employs 34 real estate and finance specialists at its Zurich head office and at its Cologne branch. The Group plans and is currently implementing 14 projects with a total target marketing volume of approximately CHF 800 million. Peach Property Group Ltd has been listed on the SIX Swiss Exchange since 12 November 2010 (PEAN, ISIN CH0118530366).

For more information, visit www.peachestates.com

THIS DOCUMENT DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY SECURITIES. THIS DOCUMENT CONSTITUTES NEITHER A PROSPECTUS WITHIN THE MEANING OF ARTICLE 1156 AND ARTICLE 652a OF THE SWISS CODE OF OBLIGATIONS NOR A LISTING PROSPECTUS WITHIN THE MEANING OF THE LISTING RULES OF THE FRANKFURT STOCK EXCHANGE. THIS DOCUMENT AND THE INFORMATION CONTAINED HEREIN MAY NOT BE PUBLISHED IN COUNTRIES OUTSIDE GERMANY AND SWITZERLAND WHERE THE PUBLIC DISSEMINATION OF SUCH INFORMATION MAY BE RESTRICTED OR PROHIBITED BY LAW. IN PARTICULAR, THIS INFORMATION MAY NOT BE BROUGHT TO OR COMMUNICATED IN THE UNITED STATES OF AMERICA (USA) AND SHOULD NOT BE DISTRIBUTED OR COMMUNICATED TO U.S. PERSONS (INCLUDING LEGAL ENTITIES) OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. ANY NON-COMPLIANCE WITH THESE RESTRICTIONS MAY RESULT IN AN INFRINGEMENT OF U.S. SECURITIES LAWS. THE SECURITIES OF PEACH PROPERTY GROUP (DEUTSCHLAND) GMBH ('COMPANY') ARE NOT AVAILABLE FOR PURCHASE BY THE GENERAL PUBLIC OUTSIDE GERMANY AND SWITZERLAND. IN PARTICULAR, THE SECURITIES OF THE COMPANY HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES LAWS AND MAY NOT BE SOLD, MADE AVAILABLE FOR PURCHASE OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS (INCLUDING LEGAL ENTITIES) WITHOUT THE CORRESPONDING REGISTRATION OR WITHOUT THE EXISTENCE OF AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES LAWS.
Diese Mitteilung ist kein Angebot zum Kauf oder zur Zeichnung von Obligationen. Diese Mitteilung gilt nicht als Emissionsprospekt im Sinne von Art. 1156 und Art. 652a OR oder als Kotierungsprospekt im Sinne der Kotierungsvorschriften der Frankfurter Wertpapierbörse. Diese Mitteilung sowie die darin enthaltenen Informationen dürfen nicht in Staaten ausserhalb Deutschland und der Schweiz verbreitet werden, welche die öffentliche Verbreitung solcher Informationen gesetzlich beschränken oder verbieten. Insbesondere darf diese Mitteilung nicht in die Vereinigten Staaten von Amerika (USA) gebracht oder übertragen werden oder an U.S.-amerikanische Personen (einschliesslich juristischer Personen) oder an Medien mit einer allgemeinen Verbreitung in den USA verteilt oder übertragen werden. Jede Verletzung dieser Beschränkungen kann einen Verstoss gegen U.S.-amerikanische wertpapierrechtliche Vorschriften begründen. Die Wertpapiere der Peach Property Group (Deutschland) GmbH ('Gesellschaft') werden ausserhalb von Deutschland und der Schweiz nicht öffentlich zum Kauf angeboten. Insbesondere wurden sie nicht gemäss den Regelungen der U.S.-amerikanischen wertpapierrechtlichen Vorschriften registriert und dürfen ohne entsprechende Registrierung oder ohne das Vorliegen einer Ausnahmeregelung von der Registrierungspflicht nicht in den USA oder an U.S.-amerikanische Personen (einschliesslich juristischer Personen) verkauft, zum Kauf angeboten oder geliefert werden.

15.12.2011 News transmitted by EquityStory AG. 
The issuer is responsible for the contents of the release.
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Language:               English
Company:                Peach Property Group AG 
                        Seestrasse 346  
                        8038 Zürich
                        Switzerland
Phone:                  +41 44 485 50 00
Fax:                    +41 44 485 50 11
E-mail: investors@peachestates.com Internet:               www.peachestates.com
ISIN:                   CH0118530366
Swiss Security Number:  A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Open Market in                         Frankfurt; SIX
 
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