Press release

Preliminary figures show marked improvement in Peach Property Group AG earnings in 2015

- EBT of around CHF 1 million expected

- Rental income up 12 percent to CHF 8.6 million (+20 percent excluding exchange rate effects)

- Share of investment properties in overall portfolio rises to over 70 percent

- Equity ratio increases sharply to over 30 percent

- Positive outlook for 2016

Zurich, 1 February 2016 - Preliminary, unaudited figures show that Peach Property Group AG, an investor in residential and commercial real estate, recorded a noticeable year-on-year improvement in earnings in the 2015 financial year, as expected. Thanks to the successful expansion of its portfolio and advancements in existing investment properties, rental income was up substantially on the prior-year figure. A sizeable reduction in operating costs was recorded at the same time. The completion of the "Living 108" project in Berlin and the handover of apartments in the other projects in Berlin and Hamburg appreciably reduced the proportion of developments in the Group's portfolio, further improving its risk profile.

In 2015, the Peach Property Group expanded its investment portfolio and achieved major letting successes. Investment properties now make up more than 70 percent of the overall portfolio, which is close to the strategic objective of at least 75 percent communicated by the Group. Peach Property's annualised current rental income rose by around 12 percent to CHF 8.6 million, up from CHF 7.7 million in the previous year. Excluding the negative exchange rate effects, current rental income would have climbed around 20 percent. Increasing its focus on investment properties also enabled Peach Property Group to lower its operating costs - particularly staff costs - significantly in the past financial year by over CHF 2 million to around CHF 10 million. Now that the cost reduction programme launched in spring 2015 has been fully in force since the fourth quarter of 2015, this effect will continue in 2016.

In the second half of the year, impairment losses of around CHF 4.6 million were charged for the development projects Peninsula Wädenswil, Seelofts in Rorschach, yoo berlin and H36 in Hamburg. Furthermore, costs incurred in connection with the Am Zirkus project had a negative impact of around CHF 1.2 million on the income statement. These charges are all of a one-off nature and they all concern the development business, which is has now been substantially reduced.

In spite of the extraordinary items, Peach Property Group is forecasting positive earnings before taxes (EBT) of around CHF 1 million.

Peach Property's balance sheet at the end of December 2015 showed a significant increase in equity year-on-year. The equity ratio in accordance with IFRSs stood at around 30 percent compared with 19.8 percent at the end of December 2014, and 25.5 percent at the end of the first half of 2015. Further to the reduction of the overall balance sheet and hence risk positions, the increase was due in particular to the successful placement of a hybrid bond in December 2015 with a volume of around CHF 25 million. This created additional financial latitude for Peach to refinance its liabilities and finance its further growth.

The Peach Property Group is confident that its business will continue to develop encouragingly in the 2016 financial year. The basis for this will be provided by continued successful management of the remaining development projects and an active management of the investment portfolio in the residential property sector with a view to value appreciation, in order to further increase current revenue through rental income.

Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: "We made good progress in 2015 with the expansion of the investment portfolio and also significantly reduced our risk exposure by completing the Living 108 project in Berlin and handing over further apartments. The Group has also set a further key milestone with the progress it has made in planning the construction of around 650 rental apartments on the Gretag site in Regensdorf. We recorded a perceptible increase in rental income as projected and achieved a noticeable improvement in earnings for the year as a whole. Our equity ratio of 30 percent provides a solid basis for the future. For 2016, we are planning to acquire additional investment properties that generate good yields and have appreciation potential, mainly in Germany's residential property sector and also to further reduce our costs - for both our operations and also our financing activities."

The final key financial indicators and further information on the course of business will be announced on 15 March 2016.

Detail regarding the portfolio are available in the Asset Reporting document (in German) for the fourth quarter of 2015 that was published today: http://investoren.peachproperty.com/websites/peachproperty/English/5300/asset-reporting.html

Contact:

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

German media

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 leading property investor and developer focused on investments in Germany and Switzerland. 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).

For more information, see www.peachproperty.com