Peach Property Group Ltd (Peach Property Group), one of the leading specialist developers of luxury residential property in Europe, is launching its initial public offering (IPO). 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.
Based on the midpoint of the price range of CHF 29 to CHF 37, Peach Property Group would achieve net proceeds of up to approximately CHF 53 million (approx. 39.3 million), which will primarily be put towards financing new development projects for the continuing growth of the company.
Book-building has begun and is scheduled to conclude on November 10, 2010, 12 noon CET. The placement price is expected to be published on November 11, 2010. First day of trading is expected to be on November 12, 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."
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 centers and in some of Europe's finest holiday resorts.
Peach Property Group has grown strongly in the last few years. Earnings before interest, taxes, depreciation and amortization (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 realize projects in 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 sector. Backed by its own experience, Peach Property Group considers this sector unique because of 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 sector 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 projects 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 concept of a project through to its delivery, thereby realizing t