Peach Property Group secures €120m in bank financing

Residential real estate investor Peach Property Group has secured a €120 mln loan from a major German bank. 

Peach Property Group

This five-year, mortgage-backed financing, obtained under standard market terms, will be used to refinance existing debt and strengthen the company's financial position. 
This agreement marks significant progress toward Peach Property Group's goal of restructuring its balance sheet by 2025. 
While €30 million will be used to pay off existing secured financing early, the remaining funds will primarily be used to refinance a portion of its €173 million bond that matures in November 2025.
Gerald Klinck, CEO of Peach Property Group, said: “With this credit facility from our partner bank, we are taking a major step forward in our financial transformation. Our refinancing goal is clear: we aim to achieve a balance sheet supported by long-term, mortgage-backed credit. The new financing at appropriate conditions also demonstrates the confidence we have regained in capital and financing markets through the various structural measures undertaken over the past twelve months. With regard to the remaining part of the bond due in November 2025, we are already in advanced discussions. Therefore, we are confident that the final step for the complete refinancing of the bond will also be successful.”
Zurich-based Peach Property Group specializes in German residential real estate investment. Their portfolio comprises high-yield properties primarily located in German Tier II cities near major metropolitan areas. Furthermore, they are developing select Swiss properties, such as the Peninsula Wädenswil project, for condominium sales.