EQS-Adhoc

Peach Property Group resolves capital increase; Kreissparkasse Biberach becomes new anchor investor with 7.8% shares

EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Capital Increase Peach Property Group resolves capital increase; Kreissparkasse Biberach becomes new anchor investor with 7.8% shares 04-Apr-2017 / 07:00 CET/CEST Release of an ad hoc announcement pursuant to Art. 53 KR Press release Peach Property Group resolves capital increase; Kreissparkasse Biberach becomes new anchor investor with 7.8% shares

- 422,554 new registered shares issued from authorised capital

- Kreissparkasse Biberach becomes Peach Property Group AG's second largest shareholder with 7.8%

- Peach Property Group AG's free float remains at a high 70%

- Proceeds will be used to finance acquisitions in residential real estate in Germany

- First day of trading of new shares - 7 April 2017

Zurich, 4 April 2017 - Peach Property Group AG has resolved to perform a capital increase to reinforce its institutional investor base and to finance the further expansion of the Group. 422,554 new registered shares of Peach Property Group AG will be issued from the authorised capital, each with a nominal value of CHF 1.00, while excluding shareholders' subscription rights, as part of a private placement. The issue price corresponds to the volume-weighted average of Peach Property Group AG's share price in the past 60 trading days.

All of the 422,554 new registered shares have been subscribed by Kreissparkasse Biberach. The gross proceeds from the issue totals CHF 6.9 million. Peach Property Group AG's General Meeting in May 2015 resolved to create authorised capital in the amount of 2,000,000 shares. The company is planning to issue these shares from this authorised capital; the other shares from the authorised capital will expire on 8 May 2017. The funds from the capital increase are to be used to further expand the portfolio of residential properties, focusing on B-locations in Germany. The Group was able to increase its portfolio of residential properties by more than one third to 4,243 units at the start of March 2017, thus increasing its annualized target rental income to CHF around 22 million.