Peach Property expects jump in profits
Peach Property Group expects to generate a pre-tax profit of over CHF 100 million in the 2019 financial year. This would be an increase of 75% compared to the previous year.
In the previous year, Peach Property reported a profit of CHF 56.9 million; now the company expects profits to jump to more than CHF 100 million, exceeding its own expectations.
The purchase of around 3,650 apartments in Germany, announced in early October, would increase the apartment portfolio by more than 40% to 12,450 units with a market value of around 1.1 billion by the end of 2019, the company says. Annual actual rental income would increase to around 60 million in the medium term. With the closing of the portfolio acquisition, the net asset value at market value per share will increase to over CHF40.00 by the end of the year, Peach Property said.
To finance the purchase, Peach Property is issuing an unsecured corporate bond with a volume of EUR 250 million and a term of three years and three months. It is to be placed exclusively with institutional investors in Europe and qualified investors in the United States; the interest rate will be determined by means of a bookbuilding process.
According to the company, the equity portion is made up of the conversion of a convertible hybrid bond and the subscription of a subordinated mandatory convertible bond by the major shareholder Kreissparkasse Biberach. (ah)
