Peach Property Group AG — Earnings Release 2011

Nov 8, 2011

News Details

Ad-hoc | 8 November 2011 07:03

Peach Property Group confirms development projects progressing as planned and announces cash flow expectations

Peach Property Group AG / Key word(s): Market Report/Results Forecast

08.11.2011 07:03

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

Media release

Peach Property Group confirms development projects progressing as planned
and announces cash flow expectations

• Around CHF 80 million of cash flow expected by 2013 from projects now
  under construction

• Cash flow from all current projects expected to total around CHF 170
  million by 2016

• Development project construction stages move forward on schedule;
  further sales progress

• Introduction of quarterly asset reporting from 2012 to enhance
  transparency

Zurich, 8 November 2011 - Peach Property Group Ltd, a leading developer of
high-quality residential property in German-speaking Europe, is hosting an
investor conference today. On this occasion, for the first time, the Group
has quantified expected cash flows from its current development projects.
Overall, Peach Property Group expects its projects' portfolio - broadly
based across all stages of development - to generate cash flows to the tune
of CHF 170 million over the period from 2012 to 2016. Just under half of
this figure - around CHF 80 million - is expected as early as 2012 and
2013, when projects now under construction will be completed.

Development projects forging ahead
Peach Property Group is progressing its development projects in
Switzerland, Germany and Austria on schedule. Peach Property Group
commenced surface construction works on its Berlin projects 'yoo berlin'
and 'Am Zirkus 1' in September. The ground floors are to be completed by
the end of 2011. Currently 39% of the planned sales volume have been
registered with the notary at 'yoo berlin', with a further 14% subject to
contract. In Hamburg, buyers move into the first completed apartments in
Stage One of the 'Harvestehuder Weg 36' project in January 2012. Here, 63%
of the sales volume is already notarized, with a further 9% subject to
contract. As for Stage Two, sales already stand at 36% (25% completed; 11%
subject to contract): construction should begin in early 2012. Surface
construction work is progressing according to schedule on the 'Schooren des
Alpes' project in Kappl, near Ischgl (13% of sales completed, 27% subject
to contract). The topping-out ceremony will take place on 11 November 2011.

The proportion of properties sold at the 'Beach House' project now stands
at 43% of planned sales volume (25% completed; 18% subject to contract).
Construction goes ahead as soon as around 43% of sales have been completed.
The 'Aquatica' project was approved in October 2010, though an appeal is
currently pending. Further hearings take place in December. If the appeal
goes further, the Administrative Court, as the next instance, would have to
rule in the matter, and this might be expected by the end of 2012. As the
court of last instance, the Federal Supreme Court might be expected to
reach a final judgement in 2013. A building permit application for the
'Mews & Gardens' project was filed in the summer of 2011, and Peach
Property Group expects to obtain this permit before the end of this year.
The 'Dockside' project, too, has recorded progress: the preservation
agreement for the historic building has been finalised with the canton. As
soon as it is signed and legally binding, the detailed planning work can
commence for submission of the application for a building permit.

Finance assured for current projects
The financing of all projects on sale in Switzerland and Germany is
guaranteed. Peach Property Group needs no further equity in order to finish
these current projects. Thanks to the expected cash flows from
'Harvestehuder Weg 36' Stage One and 'Schooren des Alpes' from as early as
2012 plus an equity ratio of 51% on book value (57% on market value basis),
Peach Property Group is on a firm financial footing to further pursue its
growth strategy. Active management of investment properties serves as an
extension of the Group's strategy, with the focus on total return on
investment. In future, steady income from rental properties with attractive
yields is expected to even out project returns, which tend to be realised
in a concentrated manner.

Quarterly asset reporting enhances transparency
Peach Property Group is planning to publish asset reporting quarterly from
2012 on. This will include detailed data on construction progress and sales
levels for individual projects. The aim is to regularly comment on and
update the quantitative and qualitative aspects of the portfolio. Peach
Property Group thereby intends to enhance the transparency of its reporting
at project level.

Outlook
Peach Property Group is concentrating on completing its projects under
construction and continues to consider acquisitions of suitable development
projects and portfolio properties yielding high income. At present, four
projects are at an advanced stage in the acquisition pipeline. On current
project level, the aim is to reach various milestones in the next few
months. They include the 'Peninsula' site in Wädenswil, where permission to
build the 'Mews & Gardens' project should be obtained, and a ruling on the
'Aquatica' appeal. Completion of the surface construction stages of the
projects 'Harvestehuder Weg 36' (Stage One), 'yoo berlin', 'Am Zirkus 1'
and 'Schooren des Alpes' is expected during 2012 or in the first quarter of
2013.

Dr. Thomas Wolfensberger, CEO of Peach Property Group Ltd, comments: 'Peach
Property Group has progressed well since its initial public offering one
year ago. We have passed major milestones and increased the market value of
our property portfolio. Our current development projects will generate
significant cash flows in the coming years. In parallel, we have developed
our strategy further and acquired our first portfolio of rental properties
to lay the foundation for more regular revenue streams in future.'

Peach Property Group's investors' conference commences at 10 a.m. today at
the Zurich Park Hyatt. The relevant presentation material is available in
German for download from the company's website via the following link:

http://investoren.peachestates.com/peachestates/pdf/Investors_Day_2011.pdf

Contact for investors and analysts:
Dr. Thomas Wolfensberger, Chief Executive Officer
Bruno Birrer, Chief Operating Officer
+41 44 485 50 00 | investors@peachestates.com

Peach Property Group Ltd press contact:
Barino Consulting | Siro Barino
+41 79 335 24 24 | info@barino.ch

Information on Peach Property Group Ltd
Peach Property Group Ltd is one of the leading developers in the area of
top-quality residential property in the German-speaking part of Europe.
Activities cover the entire value chain of property development, from site
surveying to project planning, implementation and marketing. Properties
developed by Peach Property Group Ltd are located on exceptional sites in
or near city centres and holiday resorts. Premier amenities meet the
requirements of a demanding clientele.

Peach Property Group Ltd currently employs 34 real-estate and finance
specialists at its Zurich head office and at its Cologne branch. The Group
plans and is currently implementing 14 projects with total target marketing
volume of approximately CHF 800 million. Peach Property Group Ltd has been
listed on the SIX Swiss Exchange since 12 November 2010 (PEAN, ISIN
CH0118530366).

For further information, please visit www.peachestates.com

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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@peachestates.com
Internet: www.peachestates.com
ISIN: CH0118530366
Swiss Security Number: A1C8PJ
Listed: Freiverkehr in Berlin, Stuttgart; Open Market in
Frankfurt; SIX

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