Bonds Check: Peach Property Group (Germany) GmbH
Luxury for private investors Until 15.07. , the corporate bond of Peach Property Group (Germany) GmbH will be drawn. With a term of five years, the coupon is 6.60%. The company has no rating. However, the renowned Frankfurt research firm for real estate stocks, SRC Research, on Monday positively in a corporate update comment on the current real estate portfolio in Hamburg and Berlin and to the targeted buying pipeline of around 100 million euros and represented the collateral. Accordingly, the Frankfurt analysts see the Peach bond priced at a very fair and would suggest a rating between BB and BBB. companies Peach Property Group is a leading developer of luxury apartments in the German-speaking Europe. Activities include the entire value chain of real estate development from site evaluation through project planning to implementation and marketing. Peach Property Group focuses on municipal and exclusive holiday homes in unusual places and with top facilities for a very demanding clientele. Peach Property Group employs 34 real estate and financial specialists at its headquarters in Zurich and in the Cologne branch. The group is currently implementing 14 projects and plans, with targeted marketing total volume of around CHF 800 million. Peach Property Group is the 12th since November 2010 on the SWX Swiss Exchange in Zurich (ISIN CH0118530366). In addition to developing high-quality residential property, the company plans also to build a portfolio of existing properties to the perpetuation of the proceeds, since the income currently relatively highly dependent on the completion of individual development projects . Just yesterday, on 12 July, has acquired the company a stock portfolio of 376 residential units with a total floor space of 26,000 square meters of the Alpha Real Estate GmbH in Frankfurt. The residential properties are located approximately 80 km south of Hamburg, Munster, and are therefore in the catchment area of the two major cities of Hamburg and Hanover. The purchase price of approximately € 9 million are offset by annual rental income of € 1.2 million, representing a very good rental yield of 13% based on the rent. Thus, during the subscription period of the bond achieved an important first step, the Company's portfolio through high yield inventory properties with a rental yield of at least 8% and in many cases even higher, to strengthen significantly. Issuer of the Bonds is the Peach Property Group (Germany) Deutsch Inc. in the Peach Properties AG with headquarters in the Swiss Stanstad the German activities of the Peach group together across. It acts as a guarantor for the drawing-standing loan. use of funds is planned to use the net proceeds from the bond primarily in the business of the issuer or invest in their current and future project companies, and to an extent of more than 7 million € in the business activities of subsidiaries of the Guarantor. It invests primarily in the purchase of residential real estate inventory of commercially used in Germany and in the purchase, development, realization and sale of real estate projects in the luxury and upscale segment in Germany. A priority of the latter investment purposes with one another can not currently be formulated, it depends from the available concrete investment opportunities. A purchase and sale of real estate can be made directly or through a share deal by acquisition or sale of participation rights to the property of those companies. Furthermore, does the issuer to use a maximum of 14 million euros of the net proceeds for refinancing of existing shareholder loans of Peach Property Group. The individual investments are determined by the emission from the already available funds, the proceeds and financed mainly by bank loans. If the Issuer and / or the Guarantor prior to placing the issue in terms of new purchases short-term financing (acquisition financing, bridge loan) record, it is intended, in the appropriate amount to use the proceeds to replace this bridge loan. While the desired minimum margin target for project development: 15-20% of the total investment costs. It is aimed, in construction development projects only a minimal Vorvermarktungsstand (defined as a certification or occupancy) to begin by 40%. . The desired minimum rate of return based on net cold rent with the purchase of stocks is 7% Strengths: - Strong position in the luxury segment - the luxury segment is enjoying a stable demand - encouraging high Vorvertriebsquote the project in Berlin, was reported several days ago and proves the quality of the project - first purchased inventory items have a very high rental yield of 13%. Weaknesses: - had only limited capital resources of the Issuer (capital 25 000 €), guarantors Peach Deutsch Properties AG with headquarters in Stans in the canton of Nidwalden 31.12.2010 an equity ratio of less than 7%. Comprehensive guarantee of the parent Peach Property Group is in place, however, the legal construction somewhat complicated and little has been communicated. Overall, however, agreed that more capital be held liable at least 20 million euros in the Guarantor, which would meet 40% of the maximum emission volume. To the liability of capital in addition to the equity of the Guarantor count of 7 million Euro subordinated loans of the parent company for which a subordination is granted to the bondholders. - Up to 14 million euros will be for the repayment of shareholder loans to be used, what you own funds in Hamburg financed in the local project, already, were now wants to refinance. Business Analysts at SRC Research deem the bond than for the bondholders against the backdrop of well-capitalized group of companies (parent company), the securities given and the existing attractive Developements in prime locations in Hamburg and Berlin as fairly priced. Unfortunately, the bond, according to SRC Research not have a rating of Euler Hermes and Credit Reform, which against the background of the still relatively low awareness of the company in this country would certainly be an advantage. It would have been estimated by SRC Research in the area of BB and BBB are. Even with an increase in the current real estate portfolio of approximately CHF 155 million on an order of magnitude of 250 million CHF to CHF 300 million in the equity of the company would remain with an equity ratio of 35% to 40% according to SRC Research still comfortable. Currently, she is still over 50%. Business - Peach Property Group (parent company)
In CHF, Source: SRC Research Conclusion: The Peach Property Group has found in the ultra-luxury segment is a profitable niche. Thus in Germany, for example, the Topobjects Yoo Hamburg (Harvestehuder path 36) and Yoo Berlin (directly on the Spree and in the immediate vicinity of the Berthold-Brecht-Platz) acquired by the insolvent Vivacon AG. There are reports the purchase prices have been very attractive. Also, the rental yield of recently acquired existing properties with approximately 13% can be quite impressive. Prospective investors should be aware that the issuer has a very low capital base and the guarantee of the parent company of Peach Property Group is present but was given only by a 100% subsidiary. of the transaction:
Issuer: Peach Property Group (Germany) GmbH
Guarantor: Deutsch Peach Properties Ltd
Coupon: 6.60%
Offer Period: 04.07.-15.07.2011
IPO: 07/25/2011
Expected Duration: 30.06.2016
WKN / ISIN: A1KQ8K / DE000A1KQ8K4
Exchange: Frankfurt Stock Exchange (Open Market / OTC)
interest rate futures: . 12/31 issue
volume: Up to 50 million €
Denomination: € 1000
Rating: No rating
Segment: Open Market
Internet:
Peach Property Group bond / The prospectus may be in the category " securities prospectuses can be downloaded. "
