Peach Property Group AG: Peach Property Group sells residential portfolio and strengthens the company's capital structure

[ Report ]

Zürich (pta003/16.11.2024/18:25) - Ad hoc announcement pursuant to Art. 53 LR

* Sale of approximately 5,200 to a consortium of investors
* Net cash inflow of approximately EUR 120 million
* Proceeds used to repay debt and fund investments in core portfolio

Peach Property Group AG ('Peach Property Group'), a property investor focusing on residential investment in Germany, sells approximately 5,200 residential units to a consortium of investors consisting of GTC Paula S.A.R.L, an affiliate of Globe Trade Center S.A. and LFH Portfolio Acquico S.A.R.L., an affiliate of Luxembourg Finance House S.A. by way of a share deal. The transaction is expected to be closed in December 2024. The parties have agreed not to disclose the sale price. Despite the continuing challenging market environment, the sale price was in line with expectations. In addition to the assumption of loan liabilities by the purchasers, Peach Property Group will receive a cash inflow of approximately EUR 120 million (excluding the payments to the minority shareholders) from the sale of its majority shareholdings in the companies concerned. Peach Property Group will use these proceeds to finance investments in its core portfolio and to repay financial debt.

The sale of approximately 19 percent of Peach Property Group's residential portfolio will reduce the Group's future target rental income and total assets to essentially the same extent.

The value of the portfolio properties used to determine the selling price is below the book values at the end of the first half of 2024. Taking into account deconsolidation effects, this will result in an additional book equity loss of approximately EUR 115 million at the end of 2024. This represents approximately 12 percent of equity.

The transaction portfolio comprises mainly of opportunistic sites of the strategic portfolio and non-strategic assets and is in line with the new portfolio strategy, which is based on criteria such as proximity to core regions, building quality and earnings prospects.

Gerald Klinck, CEO Peach Property Group AG:

«This transaction is an important milestone in our business development in a challenging environment. We were able to achieve a good and fair purchase price for the portfolio in difficult market conditions, which was in line with our expectations. The additional cash inflow provides us with considerable financial flexibility. Together with the capital increase of around EUR 120 million planned for this year, for which we have approached major shareholders to obtain advance commitments, this portfolio transaction will contribute significantly to the upcoming refinancing tasks. We are convinced that on this basis we will be able to significantly improve the operating performance, the sustainability and profitability of Peach Property Group in the medium term. »

Contacts:

Media, investors and analysts

Gerald Klinck, Chief Executive Officer
+41 44 485 50 00 | investors@peachproperty.com

Media Germany

Rosenberg Strategic Communications GmbH & Co. KG
Dirk T. Schmitt, Managing Partner

About Peach Property Group AG

Peach Property Group is a property investor focused on residential investment in Germany. The group stands for many years of experience, expertise and quality. Innovative solutions for tenants' needs, strong partnerships and a broad value chain complete the profile, while digitalization and sustainability characterize the operational business. The portfolio consists of high-yield properties, typically in German Tier II cities in the catchment areas of major metropolitan areas. Activities therefore cover the entire value chain, from site evaluation and acquisition to active asset management and the letting or sale of properties. In addition, the Group is developing selected properties in Switzerland for sale as condominiums, the latest of which is the "Peninsula Wädenswil" project.

Peach Property Group AG is headquartered in Zurich and has its German headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366). The Board of Directors includes Michael Zahn (Chairman), Cyrill Schneuwly, Beat Frischknecht, Urs Meister and Eric Assimakopoulos.

Further information: https://www.peachproperty.com/en/

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