Press release

Peach Property Group: Issue of 2015/2020 bond cancelled for the time being

Zurich/Cologne, 5 November 2015 - Peach Property Group AG, an investor in residential and commercial real estate, today announced that it has decided to cancel the issue of the planned 2015/2020 bond of its German subsidiary Peach Property Group (Deutschland) AG for the time being after having reviewed the subscription orders received at the end of the subscription period. Due to the alternative financing options available, a change of the bond terms - especially as regards its coupon and target volume - is not a viable alternative. Repayment of the existing 2011/2016 (ISIN DE000A1KQ8K4) bond, which expires on 30 June 2016, and the expansion of the Group's investment portfolio can well be financed otherwise as well.

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