| Peach Property Group receives a BBB- investment-grade rating for its corporate bond |
| 15.12.11 07:02 | |
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- Prospectus addendum offers increased security and transparency - BBB- investment-grade rating awarded by Creditreform Rating AG - Inclusion in the Entry Standard of Deutsche Börse AG - Issuing volume of up to EUR 50 million - Coupon of 6.6% p.a., duration of five years Zurich, 15 December 2011 – To satisfy the increased demands of the capital markets for security and transparency, the Peach Property Group, one of the leading developers of top-quality residential property in the German-speaking part of Europe, provided an addendum to the issue prospectus for its corporate bond which was launched on 1 July 2011. This was approved by the Federal Financial Supervisory Authority (BaFin) on 14 December 2011. The accredited rating agency Creditreform Rating AG awarded the corporate bond a BBB- investment-grade rating. Peach Property Group is filing an application for inclusion of the bond in the Entry Standard of the German Stock Exchange. The inclusion should be approved within the next few days. equinet Bank AG will act as the listing partner, specialist and designated sponsor for the bond. The bond is being placed by Sapia Partners LLP, an independent corporate finance company specialised in real estate transactions, with headquarters in London and a subsidiary in Berlin. The bond is issued by Peach Property Group (Deutschland) GmbH, a German subsidiary of the Peach Property Group. The bond offers an annual interest rate of 6.6%, has a duration of five years (until 30 June 2016) and an issue volume of up to EUR 50 million. The subscription deadline is 30 June 2012 (ISIN DE000A1KQ8K4, security identification number A1KQ8K). The funds raised from the bond will be used to finance the future growth of the Peach Property Group on the German market. The priority is the build-up of investment properties to smoothen earnings volatility of development properties, while also financing existing and new projects. In July 2011, the company acquired its first investment property portfolio in Munster near Hamburg, and the purchase of a second residential and business portfolio in Erkrath near Düsseldorf will soon be completed. At notarisation levels of between 41% and 63%, all the German development projects of the Peach Property Group are currently under construction. The on-going development projects in the prime locations in Hamburg and Berlin are being financed with internal funds totalling EUR 65 million, serving as consolidated economic equity capital for bondholders. Thanks to the addendum, the bond offers the following additional securities and guarantees in comparison to straight bonds which are customary on the market: - Relating to the consolidated total assets of the guarantor, external financing through third parties is limited to a maximum share of 75%. - To ensure the diversification of the portfolio, no more than EUR 10 million of the proceeds from the bond issue will be used for individual properties. - The consolidated property portfolio of the guarantor comprises at least 70% investment properties. - A fund-utilisation trustee is responsible for administering/supervising the issue proceeds and for observing the financial covenants. - To ensure maximum transparency, the issuer publishes a quarterly asset report on the website of the Peach Property Group. For detailed information concerning the bond and the securities prospectus with addendum, visit www.peachestates.com/anleihe. |
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