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Mandatory Convertible Bond Offering

CHF 180 million
Sole Global Coordinator
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Peach Property Group

Kempen & Co acted as Sole Global Coordinator in the CHF 180 million Mandatory Convertible Bond Issuance of Peach Property Group

Transaction highlights

  • Mandatory convertible bond offering for gross proceeds of CHF 180 million, with the bonds being convertible into 3,272,727 newly issued shares, representing 25.7% of Peach Property Group’s current outstanding share capital
  • The bonds carry a coupon of 2.50% per annum and will be mandatorily converted into newly issued registered shares on 23 December 2021 at an initial conversion price of CHF 55.00
  • The bonds may voluntarily be converted early at any time from and including 19 July 2021 until 23 July 2021 and from and including 20 September 2021 until 24 September 2021 at the conversion price
  • The transaction was launched with an initial offer size of CHF 120 million, for which the company had then already received irrevocable commitments and indications of interest to subscribe for bonds, and an option to increase to CHF 150 million
  • On the back of strong investor demand the offering was increased twice during the offer period, ultimately yielding gross proceeds of CHF 180 million, thus representing an increase of 50% vis-à-vis the initial offer size at launch
  • The company intends to use the net proceeds of the offering to finance the recent acquisition of 4,300 apartments in North Rhine-Westphalia and Bremen, Germany, as well as for the company’s further growth
  • Provisional trading of the bonds on the SIX Swiss Exchange is expected to commence on or around 23 June 2021

About Peach Property Group

  • Peach Property Group is a residential real estate investor listed on the SIX Swiss stock exchange
  • Its CHF 2.5bn portfolio, post recent acquisition, is focused on high yield, affordable housing in B cities in the catchment area of conurbations in Germany, anchored in North Rhine-Westphalia

Kempen Real Estate credentials

  • Kempen & Co has advised on Real Estate transactions in 14 different countries in Europe since 2017
  • This transaction underpins our leading position in European Real Estate ECM 

Contact

Kathrin Erfurth
Dick Boer
Birgit Brekelmans

Transactions