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Press release

Peach Property Group considers issuing a corporate bond before year end

- Bond to be issued by German Peach subsidiary

- Listing in Entry Standard segment planned

- Funds to be used for repayment of existing 2011/2016 bond as well as further expansion of German investment portfolio

Zurich/ Cologne, 26 October 2015 - Peach Property Group AG, an investor in residential and commercial real estate, today announced that it is considering issuing a new corporate bond before the end of the year, depending on the capital market environment. Its German subsidiary, Peach Property Group (Deutschland) AG, would act as the issuer. The Swiss parent company, Peach Property Group AG, would fully guarantee this bond and the payment obligations arising from it. Peach Property Group aims to market the bond by way of a public offer in Germany and Luxembourg as well as by private placements with institutional investors. The issuing prospectus is expected to be approved today by the financial supervisory authority in Luxembourg (Commission de Surveillance du Secteur Financier) and will be available later today on the Company's website at www.peachproperty.com. The plan is to list the bond in the Entry Standard segment of the Frankfurt Stock Exchange. Bankhaus Lampe KG will serve as Sole Lead Manager of the transaction.

Peach Property Group intends to use the planned proceeds to refinance its existing 2011/2016 bond (ISIN DE000A1KQ8K4), which was issued by Peach Property Group (Deutschland) AG in July 2011 and has an outstanding volume of EUR 46 million. The issue proceeds shall further be used for expanding the Group's investment portfolio by adding high-yield properties in Germany, thus further boosting current revenue through rental income. In the recent months, the Group has advanced its strategy of strengthening its focus on investment properties by making several acquisitions, thus further increasing rental income.

Cologne-based Peach Property Group (Deutschland) AG and its subsidiaries primarily own residential properties as well as selected retail and office properties in Germany located in medium-sized cities ("B" and "C" cities), mainly in the vicinity of major urban agglomerations. Furthermore, the Group this year successfully developed "Living 108", a property project comprising of 128 residential units in Berlin-Mitte. Almost all of the units were handed over in the first half of 2015. However, going forward the Groups's focus will be solely on investment properties and the further expansion of its investment portfolio. In the first six months of 2015, Peach Property Group (Deutschland) AG and its subsidiaries generated earnings after taxes of approx. EUR 7.4 million, clearly surpassing the profit of EUR 0.35 million recorded in the prior-year period. Equity almost doubled compared with the end of 2014, reaching EUR 15.5 million as of 30 June 2015.

The Swiss ultimate parent company, Peach Property Group AG, which will act as guarantor of the corporate bond, is a property investor focused on residential properties in Germany and Switzerland. The Peach Property Groups's business emphasizes investment properties, which in terms of value comprise more than 60 percent of the total portfolio. The investment properties in Germany are indirectly held through the 100% subsidiary Peach Property Group (Deutschland) AG. The Group also owns investment properties around Zurich. The second pillar of Peach Property Group's business is the development of properties with up-market specifications and amenities in prime locations, which provides the Group with a steady cash flow coupled with attractive yields. The plan is to expand the share of investment properties continually to at least 75 percent in the long term.

Bernd Hasse, Managing Director Germany of Peach Property Group, said: "Our company has made great strides and has evolved into a successful holder of investment properties. While we want to use the funds generated by the planned bond primarily for repaying the existing bond, we also plan to acquire additional attractive, mainly residential properties in Germany. In doing so, we will focus first and foremost on high-yield properties in B- and C-cities near major population centres."

Dr Thomas Wolfensberger, CEO of Peach Property Group, commented: "We are confident as regards the potential of our German subsidiary and therefore willing to fully guarantee another bond. This guarantee is based on a solid foundation: as of the end of the first half of 2015, our property portfolio had a market value of around CHF 335 million. We are profitable and generated a profit of around CHF 3.4 million in the first six months of 2015. Our equity ratio at market value is a solid 27.3 percent and our NAV at market value per share is CHF 20.37."

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 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).

For more information, see www.peachproperty.com

Important information

This document 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, Germany, Canada, Japan, or the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act") or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada or Japan. There will be no public offer of the securities in the United States.

In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order') or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as 'Relevant Persons'). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

No action has been taken that would permit an offering of the securities or possession or distribution of this announcement in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

If any statements in this document contain forward-looking statements, such statements do not represent facts and are characterized by the words 'will', 'expect', 'believe', 'estimate', 'intend', 'aim', 'assume' or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of Peach Property Group and the persons acting together with Peach Property Group. Such forward-looking statements are based on current plans, estimates and forecasts which Peach Property Group and the persons acting together with Peach Property Group have made to the best of their 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 Peach Property Group or the persons acting together with Peach Property Group. It should be kept in mind that the actual events or consequences may differ materially from those contained in or expressed by such forward-looking statements.

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The information in this announcement is subject to change.