DGAP-Adhoc

Peach Property Group AG with significant profit growth in the first half-year 2014 - Seite 2

submitted to the municipality and canton. Based on acceptance of the
outline building application, detailed planning continued on the property
located at Rheinische Strasse 173 in Dortmund. The application for a
building permit is expected to be submitted in the third quarter of 2014.
At the same time, discussions are already underway with potential general
contractors.

Also notable is the progress of the three major projects in Berlin and
Hamburg - "Am Zirkus", "yoo berlin" and "Harvestehuder Weg 36" - which have
mostly been completed. At the "Am Zirkus" property, the interior work in
the commercial units was finished, and anchor tenant Roland Berger Strategy
Consultants moved into the space in mid-June 2014. The hotel operated by
the Fattal Group under the name "Leonardo Berlin Mitte" opened on 14 August
2014. In addition, the city of Berlin approved the construction work on the
"yoo berlin" property in July 2014; in the meantime, first condominiums
have been handed over to buyers. The first buyers in Hamburg also have
already started taking ownership of their apartments.

As expected, the sales volume in the first half of 2014 at CHF 23 million
dropped below the prior-year figure of CHF 42 million. This was primarily
due to the already high rate of sales achieved by the major projects. Of
this amount, CHF 3 million from the sale of the last two apartments of the
"Schooren des Alpes" project was reflected in earnings in the period under
review, while the rest is attributable to the second half of 2014 and the
2015 financial year. These sales mark the end of the "Schooren des Alpes"
project.

The growth in profits in the reporting period was also mirrored in changes
in equity according to IFRS, which increased by 4 percent from CHF 95.8
million at the end of December 2013 to CHF 99.9 million at the end of June
2014. Equity at market values improved by 1 percent to CHF 127.1 million.
However, due to the nearly completed projects in Berlin and Hamburg, total
assets increased again, causing the equity ratio according to IFRS to drop
from 18.8 percent to 17.5 percent and at market values to decline from 23.4
percent to 21.2 percent. This is however a temporary effect: With the
transfer of ownership of apartments in the large-scale projects in the
second half of 2014, total assets will decrease sharply and the equity
ratio will rise accordingly.

Based on the strong results achieved in the first half-year of 2014, Peach
Property Group is optimistic about 2014 as a whole. The Group anticipates
significant payback from its major projects in Berlin and Hamburg. Over the
course of the year, the focus will be on expanding the portfolio of