Peach Property secures major financing
The balance sheet transformation has now been completed thanks to a deal with investment manager Castlelake, according to the company, which specializes in German apartments.
Zurich-based Peach Property has concluded a new long-term, secured financing agreement with funds of the investment manager Castlelake in the amount of EUR 410 million plus a credit line of a further EUR 30 million for investment measures. The term is three years with two one-year extension options. The new funds will be used to repay existing loans of EUR 310 million ahead of schedule. The remaining approximately EUR 100 million are available for the full repayment of the corporate bond (4.375 % Senior Notes) due in November.
"With the financing from Castlelake, we are successfully completing our comprehensive balance sheet transformation - following capital increases, extensive refinancing and the portfolio transaction at the end of 2024," says Gerald Klinck, Chief Executive Officer and Chief Financial Officer of Peach Property Group. "Our strategy of consistently focusing on secured financing has paid off in full." Taking into account a term sheet that has also been finally negotiated, the entire financing volume will be secured in the further course of the year. "We are now focusing on the performance of the strategic portfolio, the targeted sale of the non-strategic portfolio and the sustainable increase in shareholder value," says Klinck.
Peach Property, which specializes primarily in German rental apartments in B and C cities, had started to falter due to lower valuations. To shore up the company, a not inconsiderable part of the portfolio was sold at a significant discount to the book value (IB reported). (aw)
