Peach Property: Deutsche Sparkasse becomes anchor investor
Kreissparkasse Biberach acquires a 7.8 percent stake in Peach Property Group as part of a capital increase.
As part of a private placement, the real estate company will issue 422,554 new registered shares with a nominal value of CHF 1.00 each, excluding shareholders' subscription rights. The issue price corresponds to the volume-weighted average share price of Peach Property Group AG over the previous 60 trading days. The gross issue proceeds amount to CHF 6.9 million.
All of the new shares were subscribed by Kreissparkasse Biberach. As a result of the transaction, the savings bank will hold a 7.8 percent stake in Immobilien-AG, making it the company's second-largest shareholder after CEO Dr. Thomas Wolfensberger.
The funds from the capital increase will be used to further expand the residential portfolio with a focus on B-cities in Germany, the real estate company announced. Peach Property only increased its residential portfolio by more than a third to 4,243 units at the beginning of March 2017, thereby increasing its annualized target rental income to around CHF 22 million.
