Peach Property: Convertible bond fully placed
Peach Property Group has already fully placed its convertible hybrid bond with a volume of CHF 59 million at the end of the advance subscription period for shareholders.
Both existing shareholders and other investors have shown great interest in the bond, so that the target volume was increased from CHF 25 million to CHF 59 million during the subscription period, says Peach Property Group. The company intends to use the funds primarily for further acquisitions, and existing liabilities are also to be redeemed.
The convertible hybrid bond has an indefinite term, with termination by Peach Property possible for the first time on September 30, 2022. Until then, the interest coupon amounts to 3.00 percent per annum, thereafter the annual interest rate is the three-month Libor plus 9.25 percent. Between October 16, 2017 and December 30, 2020, the bond can be converted into registered shares of Peach Property Group AG at a conversion price of 29.50. The bond will be redeemed at the end of the conversion period.
The convertible bond and the syndicated loan concluded in July will provide the company with additional funds of up to 125 million. "This will enable us to drive forward the portfolio expansion even more consistently and to respond more quickly to opportunities in the market," says Dr. Thomas Wolfensberger, CEO of the Group.
Additional purchases in Kaiserslautern and Saarbrücken
At the end of September, Peach Property had already reported the purchase of 273 residential units in the German cities of Kaiserslautern and Saarbrücken. The seller was a large German real estate company, with which it was agreed not to disclose the purchase price. The acquisitions increase the rentable residential space in the overall portfolio by 12,544 to 317,513 sqm. The company now has a total of 4,870 residential units in its portfolio.
The majority of the new apartments are located in Kaiserslautern in the immediate vicinity of Peach Property Group's existing portfolio, which now grows to over 1,100 apartments as a result of the purchase. 47 residential units are located in the center of Saarbrücken. The majority of the properties have been renovated in recent years and are therefore in very good structural condition, the company says. The portfolio is around 94 percent let and currently generates annual actual rental income of 900,00 euros (around CHF 1 million). Peach Property Group's annual target rental income will increase to CHF 25.1 million as a result of the acquisition of the apartments.
