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Press release

Peach Property Group: Subscription period for corporate bond starts today

- Public offering from today, 3 November, 9:00 am until 2:00 pm on 5 November 2015 (subject to early closure)

- Coupon spread from 5.75 to 6.00 percent

- Minimum volume of EUR 25 million

- Listing in Entry Standard segment planned from 11 November 2015

 

Zurich/Cologne, 3 November 2015 - Peach Peach Property Group AG today announced that the subscription period for the 2015/2020 bond (ISIN DE000A14KGV8) issued by its German subsidiary Peach Property Group (Deutschland) AG will begin today, on 3 November 2015, at 9:00 am and end, subject to early closure, at 2:00 pm on 5 November 2015. Peach Property Group aims to raise a target volume of around EUR 50 million by way of a public offering by Peach Property Group (Deutschland) AG in Germany and Luxembourg as well as by private placements with institutional investors. The offering is subject to the condition that at least EUR 25 million will be placed with investors. The final issue volume of the bond and the amount of the coupon will be determined after the offer period has ended based on the subscription orders received. The coupon will be determined in a bookbuilding process and be in the range of 5.75 to 6.00 percent.

Bankhaus Lampe KG will be the Sole Lead Manager of the private placement.

The bond has a five-year term and full repayment of the principal is scheduled for 11 November 2020. Interest will be paid annually on 11 November, first time on 11 November 2016.

Peach Property Group AG, the Swiss ultimate parent company, will assume an unconditional, irrevocable guarantee of EUR 1.100 for each bond. The guarantee is limited to an aggregate amount of EUR 82,500,000.

The 2015/2020 bond will provide extensive protection rights for investors. In addition to a negative pledge and a change of control clause, these will include an interest rate increase and termination rights in the event that the issuer does not meet certain obligations and key figures in relation to the bond. Furthermore, distributions by the issuer have been capped at 50 percent of the issuer's IFRS comprehensive income.

The anticipated proceeds from the issue will be used to refinance or repurchase the existing 2011/2016 bond (ISIN DE000A1KQ8K4) of Peach Property Group (Deutschland) AG. Any remaining issue proceeds shall be used for expanding the Group's investment portfolio by adding high-yield properties primarily in the residential sector in Germany in order to further boost current revenue through rental income. The Group is thus driving forward its strategy of strengthening its focus on investment properties aimed at increasing value to further solidify current revenue. Even today, the issuer is a pure-play holder of investment properties in Germany primarily in the core regions of North Rhine-Westphalia, Lower Saxony and Hesse, purchasing and further optimising high-yield properties with a high cash flow. Its acquisitions are typically portfolios of between 300 and 1,000 residential units. The property portfolio of Peach Property Group AG, the guarantor of the bond, has a market value of CHF 335 million, with the investment portfolio accounting for CHF 204 million.

The public offer will be made using the subscription functionality of Deutsche Börse AG. Once the subscription period begins, investors can subscribe for the bond starting at a EUR 1,000 face value or a multiple thereof via their custodian bank.

The issuing prospectus has been approved by the financial supervisory authority in Luxembourg (Commission de Surveillance du Secteur Financier) and is available on the Company's website at www.peachproperty.com/anleihe2015.

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 (Deutschland) AG

Peach Property Group (Deutschland) AG is a wholly-owned subsidiary of Swiss-based Peach Property Group AG. The company is a successful holder of high-yield residential investment properties and selected retail and office properties in Germany. These are located in medium-sized cities ("B" and "C" cities), mainly in the vicinity of major urban agglomerations. Going forward, the company's focus will be on expanding its property portfolio aimed at increasing value by adding properties in Germany that generate good yields. As of 30 June 2015, the investment portfolio of Peach Property Group (Deutschland) AG had a market value of EUR 88 million. In the first six months of 2015, Peach Property Group (Deutschland) generated earnings after taxes of approx. EUR 7.4 million, compared with EUR 0.35 million in the previous year. Equity almost doubled compared with the end of 2014, reaching EUR 15.5 million as of 30 June 2015.

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.