Peach gains breathing space with new loan
The Zurich-based company believes it is well on the way to fully securing the refinancing of a large bond in 2025 thanks to the loan agreement for EUR 120 million.
Peach Property Group, which specializes in German rental apartments, has announced a loan agreement for EUR 120 million. The financing, which is secured by a land register and was concluded with "one of the largest German banks", has a term of five years and is "at standard market conditions". The debt capital will primarily be used to refinance existing liabilities and to strengthen the capital structure. EUR 30 million of the funds will be used for the early repayment of existing secured financing. The remaining free liquidity will be used to repay part of a EUR 173 million bond that matures in November 2025. According to Peach, further discussions are underway for the remainder of the bond. "We therefore assume that the final step for the complete redemption of the bond will also be successful," says CEO Gerald Klinck.
The Zurich-based company ran into difficulties last year due to high devaluations on its residential portfolio in Germany. To offset losses, Peach had to put residential portfolios up for sale.
"We want a balance sheet with a long-term credit profile secured by real estate liens," Klinck states as his goal. He interprets the financing deal that has just been concluded "on reasonable terms" as a sign of confidence in the latest measures. (aw)
