DGAP-Adhoc: Peach Property Group AG : Construction work for 'yoo berlin' and 'Am Zirkus 1' twin project in full swing again
Peach Property Group AG / Key word(s): Real Estate
04.10.2013 17:45
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press release
Construction work for 'yoo berlin' and 'Am Zirkus 1' twin project in full
swing again
- Finishing work for 'yoo berlin' and 'Am Zirkus 1' projects has been
fully resumed following insolvency of general contractor BSS
Beton-System-Schalungsbau GmbH
- Completion and hand-over to buyers planned for spring of 2014
- 85 percent of all trade contracts already awarded or finalised
- Additional costs of EUR 15 million due to higher construction and
financing costs and penalties as a result of delayed completion
- Construction work at major project in Hamburg and all other projects of
the Group proceeds according to plan
Zurich, 4 October 2013 - Peach Property Group AG, a leading property
investor and developer of high-quality residential real estate in the
German-speaking region of Europe, today announced that it has fully resumed
the internal finishing work for the 'yoo berlin' and 'Am Zirkus 1' twin
projects in Berlin following the insolvency of the general contractor, BSS
Beton-System-Schalungsbau GmbH. Hand-over to the buyers is expected to take
place in the spring of 2014. Due to considerably higher construction costs,
which have become apparent in the course of awarding contracts to the
trades, and due to higher financing costs and penalties payable to the
future buyers and tenants as a result of the delayed completion, the total
costs incurred by Peach Property Group will increase by around EUR 15
million (CHF 19 million). The vast majority of these additional costs will
impact on the earnings of the current 2013 financial year, which is
expected to be negative as a result. Returns from these projects will
decrease as well: In contrast to the figure of CHF 75 million announced at
the 2013 financials press conference, Peach Property Group now expects the
ongoing projects to be completed in 2013 and 2014 to generate net returns
of around CHF 55 million.
Peach Property Group AG had taken over coordination of the construction
activities in Berlin following the insolvency of the previous general
contractor, BSS Beton-System-Schalungsbau GmbH, in June 2013. In the
meantime, Peach Property Group has directly awarded or finalised around 85
percent of all contracts for trades in connection with 'yoo berlin' and 'Am
Zirkus 1'. Final offers have been submitted for a further 10 percent. This
means that costs and schedules have been fixed for around 95 percent of the
construction work to be performed. Both projects are currently in the stage
of internal finishing work. More than two-thirds of the construction work
has already been performed. Around 80 percent of the projects' units have
been marketed and no less than 90 percent have been let.
In the second quarter of 2013, Peach Property Group had also taken over
coordination from the previous general contractor, Peter Holthausen GmbH &
Co. KG, for the major 'Harvesterhuderweg 36' project in Hamburg.
Construction work there continued seamlessy without additional costs and is
proceeding according to plan. As a result, this project will be completed
and the residential units will be handed over before the end of the year.
Around 65 percent of the apartments have already been sold including
authentication by a notary public or reserved.
Thomas Wolfensberger, CEO of Peach Property Group AG, states: 'Having no
less than two general contractors - both of whom were established companies
with a previously positive credit rating - filing for insolvency was a huge
challenge. We mastered this challenge with our experienced team by taking
swift and decisive action. We have done everything to get the two Berlin
projects, 'yoo berlin' and 'Am Zirkus 1' back on track as soon as possible.
We are delighted that we managed to do this and are looking forward to
completing this twin project soon. However, like the other institutional
developers who worked with BSS we are very unhappy about the delays and
extra costs this involves.'
Contacts
Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 (0) 44 485 50 00 | investors@peachproperty.com
Media Germany:
edicto GmbH, Axel Mühlhaus
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de
About Peach Property Group
Peach Property Group AG one of the leading developers in the field of
top-quality residential property in the German-speaking region of Europe.
Its activities cover the entire prime property development value chain,
from site evaluation to project planning, implementation and marketing.
Peach Property Group focuses on city and holiday residences in exceptional
locations and featuring highest-quality fittings for a discerning
clientele. The company's integrated corporate strategy encompasses not only
the development of exclusive residential properties, but also the
management of investment properties for the purpose of generating
consistent annual revenues.
Peach Property Group AG is headquartered in Zurich and also has a branch
office in Cologne. The company's shares are listed on SIX Swiss Exchange
(PEAN, ISIN CH0118530366).
Visit www.peachproperty.com for more information.
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=EORHICLMIK
Document title: Construction work for 'yoo berlin' and 'Am Zirkus 1' twin
project in full swing again
04.10.2013 News transmitted by EQS Schweiz AG.
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Language: English
Company: Peach Property Group AG
Seestrasse 346
8038 Zürich
Switzerland
Phone: +41 44 485 50 00
Fax: +41 44 485 50 11
E-mail: investors@peachproperty.com
Internet: www.peachproperty.com
ISIN: CH0118530366
Valor: A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Frankfurt in Open
Market ; SIX
End of Announcement EQS Group News-Service
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