Peach Property Group AG / Key word(s): Real Estate
06.11.2014 07:02

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

---

Press release 

Peach Property Group AG expands portfolio; target rental income to exceed CHF 10 million p.a.

- Portfolio with 336 apartments in northern Hesse notarised
  - Purchasing yield over 11 percent

- Target rental income for the Peach Group increased by more than CHF 1.2     million to over CHF 10 million

- Purchase agreements completed for development properties and building land in Bad Reichenhall, Wollerau and Rorschach
Zurich, November 6, 2014 - Peach Property Group a leading property investor and developer of high-end residential and commercial real estate, today announced the acquisition of a property company based in northern Hesse, resulting in a major expansion of the company's investment property portfolio. The acquisition will add a further 336 residential units to the Group's residential portfolio. Situated in three locations in the Kassel area, these are in good structural condition and offer a total lettable space of just under 23,000 square metres. The acquisition will increase the target annual rental income of the Peach Property Group by more than CHF 1.2 million (approx. EUR 1 million) to just over CHF 10 million (EUR 8.3 million).

The portfolio's initial yield is over 11 percent. The completion of the purchase still requires the final approval of the financing bank, which is expected during the next few weeks.

The transaction will bring the Peach Property Group's residential property portfolio up to a total of 884 residential units. It is the company's strategy to further improve income stability by increasing the total number of properties owned. In order to increase rental income still further while at the same time adding value, the company intends to implement a modernisation and refurbishment programme similar to ones it has already successfully implemented in other locations. This is expected to significantly increase the present 87 percent occupancy rate of the newly acquired portfolio.

The Peach Property Group also announces the completion of the purchase and land register transfer of a plot of land in Wollerau, Switzerland, as well as a hotel in Bad Reichenhall, Germany. Peach plans to consolidate the newly acquired 5,300 square metre plot in Wollerau with an adjacent plot already in the company's possession in order to construct condominiums within a park-like development. The purchase agreement was notarised at the beginning of 2013. Planning permission for the development was granted shortly before the transfer of ownership took place. Further details will be provided at the marketing launch in a few weeks' time.
The acquisition strategy for the 80-room hotel in Bad Reichenhall encompasses the refurbishment into a 60 room apart-hotel and the subsequent individual sale. However, due to the good condition of the hotel and several requests from potential operator, the Company is also considering continuing to operate it as a hotel.

In Rorschach on Lake Constance in Switzerland, Peach has finally completed the purchase of four loft apartments for development. The apartments will be marketed by Peach Property Group as "Seelofts Rorschach".
Thomas Wolfensberger, CEO of Peach Property Group, commented: "We are very pleased to have made further progress in expanding our investment portfolio. These acquisitions will increase both the size of our residential property portfolio as well as the share of investment property within our overall portfolio. As a result, we will increase our regular rental income and further stabilise our revenues in line with our strategy. The transaction will also allow us to increase our equity ratio."
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



+++++
Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=ANXNIUYCSS Document title: Press release


06.11.2014 News transmitted by EQS Schweiz AG. 
The issuer is responsible for the contents of the release.
EQS publishes regulatory releases, media releases on the capital market and press releases.
The EquityStory Group distributes authentic and real-time financial news for over 1'300 listed companies. 
The Swiss news archive can be found at www.equitystory.ch/news

---

 
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@peachproperty.com Internet:               www.peachproperty.com
ISIN:                   CH0118530366
Valor:                  A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Frankfurt in Open                         Market ; SIX
 
End of Announcement EQS Group News-Service  

---