Peach Property : increases the target volume for its convertible hybrid bond due to strong demand

THIS IS NOT AN OFFER. NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

Press release

Peach Property Group increases the target volume for its convertible hybrid bond due to strong demand

- Significant subscription volumes shortly after beginning of pre-subscription period

- Option to increase target volume from CHF 25 million to up to CHF 59 million will be used

- Pre-subscription right for shareholders until 29 September 2017 (noon CET) with bookbuilding for non-subscribed bonds

- Proceeds to be used to further portfolio increase and repayment of liabilities

Zurich, 20 September 2017 - Peach Property Group, an investor specialising in the management of residential property in Germany, has resolved to increase the target volume of its convertible hybrid bond (ISIN 38195225/CH0381952255) due to high demand. The Company recorded a significant volume of subscriptions shortly after the beginning of the pre-subscription period for shareholders, which runs until 29 September 2017 (noon). Shareholders and further investors have signalled great interest in subscribing for the bond. As a result, Peach Property Group AG is using its option to increase the target volume from CHF 25 million to up to CHF 59 million.

Any convertible hybrid bonds that have not been subscribed during the pre-subscription will be offered to interested shareholders and further investors. Listing on the SIX Swiss Exchange has been applied for and provisional admission is planned for 4 October 2017. The Group will use the funds from the issue of the convertible bond to further expand its real estate portfolio in line with its strategy and to repay existing liabilities.

The convertible hybrid bond has an unlimited term, and Peach Property Group AG can terminate it for the first time on 30 September 2022. Until this date the interest coupon is 3.00 percent per year, and thereafter annual interest increases to 3-month LIBOR plus 9.25 percent. The convertible hybrid bond can be converted to registered shares of Peach Property Group AG (ISIN 11853036/CH0118530366) at a conversion price of CHF 29.50 from 16 October 2017 to 30 December 2020. The transaction is governed by the prospectus, which can be downloaded from Peach Property Group AG's Web site at www.peachproperty.com/WHA.

Contacts:

Media, investors and analysts

Dr. Thomas Wolfensberger, Chief Executive Officer und 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 is a property investor and developer focused on investments in Germany and Switzerland. The Group stands for long time experience, competence and quality. Innovative solutions for modern housing needs, strong partnerships and a wide value chain complete the profile of the Group. The portfolio consists of an increasing number of high yield investment properties, typically in B-cities in close reach to metropolitan areas. In addition, the Group develops properties for its own portfolio or for the sale as condominium. Developments for sale focus on A-locations and encompass attractive architecture and high level furnishing for an international clientele. The business activities of the Group cover the entire value chain, from property acquisition and site selection to active asset management and finally to the sale or lease of properties.

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). Its Board of Directors consists of Reto Garzetti (President), Peter Bodmer and Dr. Christian De Prati.

For more information, see www.peachproperty.com

Important information

This document does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the European Union, Australia, Canada, Japan, or the United States or in any jurisdiction to whom or in which such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act") or another exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in the EU, Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein has not been and will not be registered under the Securities Act or under the applicable securities laws of the EU, Australia, Canada or Japan. There will be no public offer of the securities in the United States.

In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the 'Order') or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as 'Relevant Persons'). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

No action has been taken that would permit an offering of the securities or possession or distribution of this announcement in any jurisdiction where action for that purpose is required. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

If any statements in this document contain forward-looking statements, such statements do not represent facts and are characterized by the words 'will', 'expect', 'believe', 'estimate', 'intend', 'aim', 'assume' or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of Peach Property Group and the persons acting together with Peach Property Group. Such forward-looking statements are based on current plans, estimates and forecasts which Peach Property Group and the persons acting together with Peach Property Group have made to the best of their knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by Peach Property Group or the persons acting together with Peach Property Group. It should be kept in mind that the actual events or consequences may differ materially from those contained in or expressed by such forward-looking statements.

The information contained in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The information in this announcement is subject to change.

This document does not constitute an issuing prospectus according to Article 652 a and 1156 of the Swiss Code of Obligations, nor does it constitute a listing prospectus according to Article 27 ff of SIX Swiss Exchange's listing regulations.