Peach Property : issues CHF 25 million hybrid convertible bond to support its further growth

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 issues CHF 25 million hybrid convertible bond to support its further growth

- Hybrid convertible bond with a volume of CHF 25 million with option to increase to CHF 59 million

- Coupon fixed at 3.00 percent p.a. until 30 September 2022

- Conversion price of CHF 29.50 (corresponding to a premium of around 20 percent on the weighted average of the last 30 days)

- Proceeds to be used for portfolio expansion and repayment of liabilities

Zurich, 18 September 2017 - Peach Property Group, an investor specialising in the management of residential property in Germany, today announced the issuance of a subordinated hybrid convertible bond (ISIN 38195225 / CH0381952255), making it the first Swiss company to issue a listed hybrid convertible bond. The target volume for the hybrid convertible bond is CHF 25 million. In the event of greater demand, the Company reserves the right to increase the volume to a maximum of CHF 59 million. Shareholders of the company can subscribe for the hybrid convertible bond between 18 September and 29 September 2017, 12 noon (CET), exercising an advance subscription right. Unsubscribed hybrid convertible notes will be offered to further interested shareholders and other investors in a bookbuilding process.

The hybrid bond has an unlimited term, and may not be terminated by Peach Property Group until 30 September 2022. Up until that date, the bond will have a coupon of 3 percent p.a.; after that, the annual interest rate will be equivalent to the 3-month LIBOR rate plus 9.25 percent. The hybrid convertible bond can be converted into registered shares of Peach Property Group AG (ISIN 11853036 / CH0118530366) at a conversion price of CHF 29.50 at any time between 16 October 2017 and 30 December 2020. The conversion price represents a premium of around 20 percent on the weighted average of the last 30 days

Application to list the hybrid convertible bond on the SIX Swiss Exchange has been made; provisional admission is planned for 4 October 2017. The prospectus including all details can be found on the Peach Property Group AG's Web site at www.peachproperty.com/WHA. Bank J. Safra Sarasin Bank AG is acting as the paying and conversion agent, Niederer Kraft & Frey AG (NKF) as legal counsel and official listing agent.

The proceeds from the hybrid convertible bond will be used to further expand Peach Property Group's property portfolio in line with the corporate strategy and to pay back existing liabilities. As a real estate investor focusing on Germany's residential sector, Peach Property Group has built up a portfolio of high-yield properties in B-cities in recent years, focusing mainly on North Rhine-Westphalia, Rhineland Palatinate and North Hesse. In the current year alone, almost 1,500 residential units have been added to the portfolio, which now comprises around 4,600 apartments. Further acquisitions are being prepared.

Dr. Thomas Wolfensberger, CEO of Peach Property Group, comments: "By issuing this hybrid convertible bond we are consistently pursuing our policy of expansion. We believe that the combination of an attractive coupon and the conversion price is very attractive for investors. The proceeds of the transaction will allow us to react faster to opportunities that arise in the market and continuously build up our property portfolio. The bond issue will also strengthen our equity base."

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.