Peach Property Group AG, a real estate investor with an investment focus on residential rental properties in Germany, successfully concluded its first revolving credit facility (RCF) of EUR 100 million. The RCF was provided by the three major international banks, J.P. Morgan, BNP Paribas and Deutsche Bank. It is the first revolving credit facility of Peach Property Group and serves to increase financial flexibility and significantly enhance the efficiency of the Group’s liquidity management. The maturity is three years with an option to extend for a further year.
Peach Property Group reduced overall average interest costs to 2.5 percent in 2022 (from 2.7 percent as of December 31, 2021) through a package of refinancing measures. Annualized interest savings are approximately CHF 2.8 million. The reduction in average interest costs was achieved through the placement of an unsecured promissory note, the conclusion of a secured bank financing, and the restructuring of existing liabilities.
The proceeds from the new financial instruments were used to early settle a EUR 60 million unsecured bank financing which will mature in June 2022, and to buy back EUR 50 million of a EUR 250 million unsecured corporate bond. The remaining outstanding principle of EUR 200 million will mature in February 2023. No further financing falls due before February 2023.
“The revolving credit facility provides us with further financial flexibility to continue our opportunity-driven growth and investment strategy. The new financing option underlines that Peach Property Group has sufficient access to capital, even amid the current challenging financial market environment. We have already successfully reduced our average interest costs in the current financial year through various refinancing measures. At the same time, we are working towards our medium-term goal of achieving a loan-to-value ratio (LTV) of below 50 percent and to further reduce interest costs,” commented Thorsten Arsan, CFO of Peach Property Group AG.
