Peach Property places 60 million bond
Peach Property Group is issuing bonds with a total volume of 60 million. The target volume of the bond was originally 50 million, but was increased because, according to the company, significant subscription volumes were already available shortly after the start of the free placement.
The hybrid bond with warrants has an unlimited term; Peach Property can call it for the first time on June 22, 2023. Until this date, the interest coupon amounts to 1.75 percent p.a. and thereafter to the then applicable capital market interest rate (at least zero percent) plus 9.25 percent p.a.
With each bond with a nominal value of CHF 1,000, the bondholder receives four warrants to subscribe for registered shares in Peach Property Group. Each warrant entitles the holder to subscribe to one registered share at a price of CHF 25.00 during the exercise period from June 25, 2018 to and including June 25, 2021.
The company intends to use the cash inflow of 60 million primarily to expand its real estate portfolio in Germany and to repay higher interest-bearing liabilities. Peach Property recently notarized the purchase of 1,066 apartments in Baden-Württemberg, and further acquisitions are planned. In the medium term, the real estate portfolio is to be increased to around 11,000 apartments with the additional funds, compared with the previous target of 9,000 units. According to the information provided, the portfolio currently comprises more than 8,000 units with a rentable area of 518,000 square meters and an annual target rent of around 40 million.
