Peach Property Group AG: Issuance of convertible bond with a volume of up to CHF 50 million and 3% coupon

Zürich (pta010/21.03.2023/07:00 UTC+1)

Ad hoc announcement pursuant to Art. 53 LR

• Peach Property Group AG resolves issuance of a convertible bond
• Issue volume of up to CHF 50 million, with an option to further increase to up to CHF 75 million
• Coupon 3% p.a.
• Duration until 2026
• Issue price: 100 percent
• Conversion price: CHF 20
• Subscription period: March 22, 2023, until presumably April 6, 2023, at 12 a.m. (CET)
• Issue date presumably April 17, 2023
• Exchange offer for investors of the existing hybrid warrant bond (SWX: PEA231; ISIN: CH0417376040) in the ratio of 1:1

Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, will issue a three-year convertible bond with an annual coupon of 3 percent on presumably April 17, 2023. The issue volume is to be at CHF 50 million, with an option to further increase to up to CHF 75 million. The subscription period is from March 22, 2023, until presumably April 6, 2023, at 12 a.m. CET. The convertible bond will be issued as part of the Company's conditional capital. The proceeds from the issue will be used primarily to refinance an outstanding hybrid warrant bond (SWX: PEA231; ISIN: CH0417376040). Accordingly, the Company will propose an exchange offer to the investors with this instrument, in a 1:1 ratio. The conversion price of the new convertible bond will be CHF 20. In light of this, the Board of Directors of Peach Property Group AG will also propose to the Annual General Meeting of Peach Property Group AG on May 24, 2023, a reduction of the nominal value of the share (SWX: PEAN; ISIN CH0118530366) from currently CHF 30 to CHF 1.

Overview of the new convertible bond

The issue price of the convertible bond amounts to 100 percent of the nominal value. The terms and conditions of the convertible bond provide for an annual interest coupon of 3 percent with a three-year maturity until 2026. Interest will be paid annually, for the first time on April 17, 2024. Peach Property Group AG expects issue proceeds of CHF 50 million, with an option to further increase to up to CHF 75 million. The conversion of the convertible bond can be carried out annually during the bond's term within two conversion windows of five trading days each into shares of Peach Property Group AG (SWX: PEAN), at a nominal value of CHF 20. The bond can be converted for the first time on December 15, 2023.

Depending on the issue volume and the actual volume converted, Peach Property Group AG will issue up to 2.5 million new shares during the bond's term with a nominal value of CHF 1 as part of its conditional capital, which was approved at the Company's General Meeting on May 20, 2022. This would correspond to approximately 12 percent of the outstanding share capital of the Group after the conversion of the outstanding mandatory convertible bond per April 12, 2023.

Use of proceeds

Peach Property Group AG will use the proceeds of the issue primarily to refinance the outstanding hybrid warrant bond (SWX: PEA231; ISIN: CH0417376040) with a first date of termination for June 22, 2023. Any additional proceeds from the issue will be used to reduce unsecured debt.

Operational update

Peach Property Group expects the net rental income to continue to increase to EUR 121 million to 123 million in the 2023 financial year, due to the continued strong demand for affordable housing and rising market rents. This corresponds to an estimated like-for-like growth of 4 percent. The Group expects the operating result (FFO I) to be in a range between EUR 21 million to 23 million. In the 2023 financial year, Peach Property Group will continue its efforts to achieve additional efficiency gains.

Valuation update

Peach Property Group's existing portfolio of approximately 27 550 residential units was valued as stable by an external property appraiser at approximately EUR 2.60 billion at the 2022 financial year-end. The average book value of a square meter of residential space from the Group's portfolio is EUR 1 450, and is at a very attractive level in a sector comparison.

Thorsten Arsan, CFO Peach Property Group AG, commented:

"In the capital-intensive real estate business financing costs and, as a basis for financing, the value of the portfolios are the decisive success factors in the current market environment. We are already focusing increasingly on debt reduction and on reducing our costs, with considerable success. With this convertible bond we are securing the liquidity to refinance outstanding instruments. The possible conversion into equity is an interesting option for investors as well as for our Company in this macroeconomic environment, which has changed significantly due to inflation and the interest rate turnaround."

Contact:

Media, investors, and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer, Thorsten Arsan, Chief Financial Officer, and Stefan Feller, Head of Investor Relations
+41 44 485 50 18 | investors@peachproperty.com

Media Germany

Edelman Smithfield, Ruediger O. Assion
+49 (0) 221 8282 8111 | mobile: +49 (0) 162 4909624 | ruediger.assion@edelmansmithfield.com

About Peach Property Group AG

Peach Property Group is a real estate investor with an investment focus on residential real estate in Germany. The Group stands for many years of experience, competence, and quality. Innovative solutions that cater to tenants' needs, strong partnerships, and a broad value chain round off the profile while digitalization and sustainability underpin the operational activities. The portfolio consists of high-yield properties, typically in German Tier II cities in the commuter belt of metropolitan areas. The activities, therefore, span the entire value chain, from location evaluation and acquisition to active asset management and the letting or sale of properties.

In addition, the Group develops selected properties in Switzerland to be sold as condominiums, of which the "Peninsula Wädenswil" development project is the final such development project.

Peach Property Group AG has its registered office in Zurich and the Group is headquartered in Cologne. Peach Property Group AG is listed on SIX Swiss Exchange (PEAN, ISIN CH0118530366). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer,
Dr. Christian De Prati, Kurt Hardt and Klaus Schmitz.

More information at https://peachproperty.com/en/

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Emitter:	Peach Property Group AG Neptunstrasse 96 8032 Zürich Switzerland
Contact Person:	Thomas Wolfensberger, Thorsten Arsan and Stefan Feller
Phone:	+41 44 485 50 00
E-Mail:	investors@peachproperty.com
Website:	www.peachproperty.com
ISIN(s):	CH0118530366 (Share)
Stock Exchange(s):	SIX Swiss Exchange; Free Market in Berlin, Frankfurt, Stuttgart