Ad-hoc | 27 October 2010 08:00
Peach Property Group Ltd (Peach Property Group), one of the leading specialist developers of luxury residential property in Europe, launches its initial public offering (IPO) as previously announced and publishes corresponding details today. The price range of the shares offered in the IPO is between CHF 29 and CHF 37 per registered share, with a nominal value of CHF 1.00 each.
Book-building begins on 27 October 2010 and is scheduled to conclude probably on 10 November 2010, 12 noon CET. The placement price is expected to be published on 11 November 2010. First day of trading is expected for 12 November 2010 on the Main Standard of SIX Swiss Exchange.
Dr. Thomas Wolfensberger, CEO of Peach Property Group, says: “The IPO will primarily help us building our attractive project pipeline faster. However, we will not sacrifice our demanding and comprehensive selection criteria regarding new projects. The IPO is an important step towards tightening and further improving our position as a leading specialist developer of luxury residential property in German-speaking Europe. Our focus on a growing market segment, which has shown little correlation to cyclical economic fluctuations in the past, provides an excellent basis for a healthy development of our company.” Based on the midpoint of the price range of CHF 29 to CHF 37, Peach Property Group would achieve net proceeds of up to about CHF 53 million, which will primarily be put towards financing new development projects for the continuing growth of the company.
Strong growth in the past
Peach Property Group is a Swiss real estate development company with current projects in Switzerland, Germany and Austria. Its integrated business model combines real estate investment, development and construction management focusing on the development and sale of luxury residential properties in some of Europe’s best locations. Properties developed by Peach Property Group are located in or nearby city centres and in some of Europe’s finest holiday resorts.
Peach Property Group grew strongly in the last few years. Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached CHF 18.1 million in 2009, reflecting a compounded annual growth rate in excess of 100% since 2007. In the first half of 2010, the EBITDA further increased to CHF 24.7 million. Net profit in 2009 and the first half of 2010 amounted to CHF 18.2 million and CHF 16.6 million, respectively.
Since 2007, Peach Property Group has successfully completed five projects and currently runs a portfolio of 14 projects. The proceeds from the IPO shall primarily be used to realise projects of its project pipeline.
Distinct focus on luxury with a fully integrated business model
The main factor differentiating Peach Property Group is its clear focus on the luxury real estate segment. Backed by its own experience, Peach Property Group considers this segment special for its highly stable prices, based on the dominant structure of its clientele. In principle, this sector shows little correlation to cyclical economic fluctuations or changes in interest rates. At the same time, Peach Property Group takes the view that this segment offers above-average margins on an international growth market.
Peach Property Group focuses on a growing clientele of discerning home owners and investors. Each of Peach Property Group’s objects is exclusively located – primarily with direct waterfront – and includes signature luxury amenities that define and enhance their owners’ active lifestyles, such as large swimming pools and spas, private marinas and stylish lobbies and lounges.
To achieve these goals, Peach Property Group works closely with globally renowned architects and designers. For example, the interior fixtures of “yoo berlin” were designed by “yoo – inspired by Starck”, co-founded by star designer Philippe Starck.
Peach’s fully integrated real estate development value chain allows Peach to develop exceptional properties from the first idea of a project to its delivery, thereby realising the inherent margins along the value chain. However, Peach does not need to execute a project until final completion of the development. Depending on economic criteria, Peach might, for instance, already decide to sell a project after receiving the building permit.
In Peach Property Group’s view, this business model puts the firm in a better position to react quickly on market changes and to pursue more easily short-term opportunities, which is a decisive factor in successfully acquiring exceptional properties.
Details of the IPO
Price range: CHF 29 to 37 per share
Basic offering: Up to 2,014,000 shares – of which up to 1,725,000 new shares and 289,000 existing shares
Over-allotment option: Up to 250,000 shares (existing shares)
Listing: SIX Swiss Exchange, Main Standard
Ticker symbol: PEAN
ISIN: CH0118530366
Securities number: 11853036
Common code: 055255814
The IPO includes a public offer in Switzerland and a private placement for institutional investors in other countries outside Switzerland, the United States of America, Canada, Japan and Australia. Members of the executive management agreed to a lock-up period of 24 months. Peach Property Group, all members of the board of directors, shareholders with more than 3% of the shares outstanding prior to the IPO, and employees holding more than 0.5% of the shares outstanding prior to the IPO agreed to a one-year lock-up period for the shares already held before the IPO.
Bank am Bellevue AG has been appointed by Peach Property Group as global coordinator, sole bookrunner and lead manager for the IPO. Book-building begins on 27 October 2010 and is scheduled to conclude on 10 November 2010, 12 noon CET. The issue price is expected to be published on 11 November 2010. First day of trading is expected for 12 November 2010 on the Main Standard of SIX Swiss Exchange.
For further information please contact:
Dr. Thomas Wolfensberger
Chief Executive Officer
Tel.: +41 44 485 50 31
Siro Barino
Media Relations
Tel.: +41 44 390 42 42
Mobile: +41 79 335 24 24