Peach Property wins Ares as anchor shareholder
Peach Property wants to increase its capital base by CHF 200 million through a mandatory convertible bond. The globally active Ares fund wants to subscribe to 150 million francs. This will make Ares the largest single shareholder in the Zurich investor for residential real estate.
The Peach Property Group is planning to make further portfolio acquisitions in Germany, explains the Zurich-based company, which specializes in residential real estate, in a press release . Peach Property intends to raise the funds by increasing the capital base by CHF 200 million. A mandatory convertible bond is to be placed for this purpose.
The subscriber of three quarters of the mandatory convertible bond has already been determined, Peach Property informed in the message. Specifically, a fund of the globally active manager of alternative bonds, Ares Management Cooperation , will subscribe to 150 million francs. This means that Ares will secure a stake of around 30 percent in Peach Property and become the largest single shareholder in the Zurich real estate company, according to the announcement. In the course of the entry, the Managing Director of the Ares Real Estate Group, Klaus Schmitz, is to be elected to the Board of Directors of the Peach Property Group.
"We are very pleased to be able to win Ares as a new anchor shareholder with extensive experience in the German residential real estate sector", Thomas Wolfensberger, CEO of the Peach Property Group, is quoted in the press release. Ares, in turn, sees the stake in the Zurich real estate company "as an excellent opportunity to invest in one of the more defensive asset classes in Europe and at the same time to benefit from the attractive growth of the Peach Property Group", explains John Ruane, Co-Head of the Ares European Real Estate Group.
