Peach Property issues hybrid convertible bond

Peach Property is thus the first Swiss company to issue a listed convertible hybrid bond. Shareholders of the company can still subscribe to the bond until September 29, 2017 under an advance subscription right. Unsubscribed bonds of the convertible hybrid bond will be offered to other interested shareholders and other investors in a bookbuilding process.

Unlimited term

The term of the convertible hybrid bond is unlimited. Termination of the bond by Peach Property Group is possible for the first time on September 30, 2022. Until this date, the bond will bear interest at a coupon rate of 3.00 percent per annum. Thereafter, the annual interest rate will be the 3-month Libor plus 9.25 percent. At any time between October 16, 2017 and December 30, 2020, the convertible hybrid bond can be converted into registered shares of Peach Property Group AG at a conversion price of CHF 29.50. This represents a premium of almost 20 percent. This corresponds to a premium of just under 20 percent compared to the volume-weighted average price of the last 30 trading days.

The listing of the convertible hybrid bond on the SIX Swiss Exchange has been applied for, the provisional admission is scheduled for October 4, 2017. The prospectus with all details is available on the website of Peach Property Group AG at www.peachproperty.com/WHA available for download. Bank J. Safra Sarasin Ltd. acts as paying and conversion agent; the law firm Niederer Kraft & Frey as legal advisor and official listing agent.

Portfolio expansion and equity strengthening

The inflow of funds from the convertible hybrid bond, which was initially planned with a volume of 25 million, will flow into the "further expansion of Peach Property Group's real estate portfolio in line with our strategy and will be used to redeem existing liabilities," says CEO Dr. Thomas Wolfensberger. "The inflow of funds will enable us to respond more quickly to market opportunities and further expand our real estate portfolio. At the same time, we are strengthening our balance sheet equity with the issue."

As a real estate investor with an investment focus on the residential sector in Germany, the Group has built up an existing portfolio in B-cities in recent years. The regional focus is on North Rhine-Westphalia, Rhineland-Palatinate and northern Hesse. In the current year alone, the portfolio has been expanded by almost 1,500 residential units to a current total of around 4,600. According to Wolfensberger, further acquisitions are in the pipeline.