Peach Property increases volume of bond
Peach Property Group has increased the target volume of its hybrid bond with warrants from CHF 50 million to up to CHF 100 million. The reason is the high demand, according to the real estate company.
According to Peach Property, a "significant subscription volume" was already noticed shortly after the start of the free placement, which runs until June 15, 2018. Additional shareholders and new investors have also expressed their interest in subscribing to the bond. Bonds that were not subscribed to as part of the advance subscription are therefore now being offered to other interested shareholders and investors.
Listing of the bond on the SIX Swiss Exchange has been applied for and the first day of trading is planned for June 25, 2018.
The hybrid bond with warrants has an indefinite term and can be called by Peach Property for the first time on June 22, 2023. Until then, the interest coupon amounts to 1.75 percent (p.a.) and thereafter to the then applicable capital market rate (at least zero percent) plus 9.25 percent (p.a.).
Anyone holding a bond with a nominal value of CHF 1,000 will receive four warrants to subscribe for registered shares in Peach Property Group AG. Each warrant entitles the holder to subscribe to one registered share at a price of CHF 25.00 per share. The exercise period begins on June 25, 2018 and ends on June 25, 2021.
Peach Property intends to use the money from the bond primarily to expand its real estate portfolio in Germany and repay liabilities. Just a few weeks ago, the company notarized the purchase of 1,066 apartments in Baden-Württemberg. Further acquisitions are planned. According to the company, the residential portfolio currently comprises around 8,000 units with a rentable area of 518,000 sqm. The portfolio currently generates an annual target rent of around CHF 40 million.
