Peach Property Group AG

DGAP-Adhoc: Peach Property Group AG expands portfolio; target rental income to exceed CHF 10 million p.a.

Peach Property Group AG   / Key word(s): Real Estate

06.11.2014 07:02

Release of an ad hoc announcement pursuant to Art. 53 KR
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Press release

Peach Property Group AG expands portfolio; target rental income to exceed
CHF 10 million p.a.

  - Portfolio with 336 apartments in northern Hesse notarised

  - Purchasing yield over 11 percent

  - Target rental income for the Peach Group increased by more than CHF 1.2
    million to over CHF 10 million

  - Purchase agreements completed for development properties and building
    land in Bad Reichenhall, Wollerau and Rorschach

Zurich, November 6, 2014 - Peach Property Group a leading property investor
and developer of high-end residential and commercial real estate, today
announced the acquisition of a property company based in northern Hesse,
resulting in a major expansion of the company's investment property
portfolio. The acquisition will add a further 336 residential units to the
Group's residential portfolio. Situated in three locations in the Kassel
area, these are in good structural condition and offer a total lettable
space of just under 23,000 square metres. The acquisition will increase the
target annual rental income of the Peach Property Group by more than CHF
1.2 million (approx. EUR 1 million) to just over CHF 10 million (EUR 8.3
million).

The portfolio's initial yield is over 11 percent. The completion of the
purchase still requires the final approval of the financing bank, which is
expected during the next few weeks.

The transaction will bring the Peach Property Group's residential property
portfolio up to a total of 884 residential units. It is the company's
strategy to further improve income stability by increasing the total number
of properties owned. In order to increase rental income still further while
at the same time adding value, the company intends to implement a
modernisation and refurbishment programme similar to ones it has already
successfully implemented in other locations. This is expected to
significantly increase the present 87 percent occupancy rate of the newly
acquired portfolio.

The Peach Property Group also announces the completion of the purchase and
land register transfer of a plot of land in Wollerau, Switzerland, as well
as a hotel in Bad Reichenhall, Germany. Peach plans to consolidate the
newly acquired 5,300 square metre plot in Wollerau with an adjacent plot
already in the company's possession in order to construct condominiums
within a park-like development. The purchase agreement was notarised at the
beginning of 2013. Planning permission for the development was granted
shortly before the transfer of ownership took place. Further details will
be provided at the marketing launch in a few weeks' time.

The acquisition strategy for the 80-room hotel in Bad Reichenhall
encompasses the refurbishment into a 60 room apart-hotel and the subsequent
individual sale. However, due to the good condition of the hotel and
several requests from potential operator, the Company is also considering
continuing to operate it as a hotel.

In Rorschach on Lake Constance in Switzerland, Peach has finally completed
the purchase of four loft apartments for development. The apartments will
be marketed by Peach Property Group as "Seelofts Rorschach".

Thomas Wolfensberger, CEO of Peach Property Group, commented: "We are very
pleased to have made further progress in expanding our investment
portfolio. These acquisitions will increase both the size of our
residential property portfolio as well as the share of investment property
within our overall portfolio. As a result, we will increase our regular
rental income and further stabilise our revenues in line with our strategy.
The transaction will also allow us to increase our equity ratio."

Contacts:

Media, investors and analysts
Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher,
Chief Financial Officer
+41 44 485 50 00 | investors@peachproperty.com


Media Germany
edicto GmbH, Axel Mühlhaus, Peggy Kropmanns
+49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

Peach Property Group AG is a property investor and developer focused on
investments in Switzerland and Germany. The portfolio includes an
increasing number of investment properties that are designed to generate
sustained income as well as attractive residential development properties.
The Group's activities cover the entire value chain, from site evaluation
to project planning, implementation and marketing. In the investment
segment, the Group is focused on properties with a potential for achieving
attractive yields based on active asset management - typically secondary
locations in the catchment area of urban agglomerations. In the development
segment, the Group concentrates on exceptional locations and properties
with high-end specifications and amenities that meet the requirements of a
demanding clientele.

Peach Property Group AG is headquartered in Zurich and has its German Group
headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss
Exchange (PEAN, ISIN CH0118530366).

For more information, see www.peachproperty.com



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Document title: Press release


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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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