Peach Property sells well below book value in Germany
Zurich-based Peach Property makes a book loss of 115 million euros on the sale of 19% of its German residential portfolio.
The Zurich-based Peach Property Group has sold 5,200 of its residential units in Germany to a consortium of investors. After debt capital, the company will receive net liquidity of EUR 120 million. However, the share deal with the investor consortium consisting of GTC Paula S.A.R.L., a subsidiary of Globe Trade Center S.A., and LFH Portfolio Acquico S.A.R.L., a subsidiary of Luxembourg Finance House S.A., also includes a loss on the half-year book value in a similar amount. "Taking into account deconsolidation effects, this will lead to an additional book equity loss of around EUR 115 million at the end of 2024," Peach Property announced. This corresponds to around 12 % of equity. The sale of the residential units will reduce Peach's residential portfolio by 19 %.
According to Peach, the portfolio sold consisted of properties in opportunistic locations from the strategic portfolio as well as units from the non-strategic part of the portfolio. "Together with the capital increase of around EUR 120 million planned for this year, for which we have approached major shareholders in order to obtain commitments in advance, this portfolio transaction will make a significant contribution to the upcoming refinancing tasks," says CEO Gerald Klinck. (aw)
