Peach Property Group secures €410m from Castlelake

Swiss residential real estate investor Peach Property Group has secured €410 mln in new long-term financing from Castlelake as well as a €30 mln credit line for investments. 

Peach Property Group

This new agreement, with a three-year term and extension options, allows Peach Property Group to repay approximately €310 mln in existing loans early and fully redeem its €100 mln corporate bond due in 2025. This financing marks the successful completion of Peach Property Group's balance sheet transformation, significantly extending its debt maturity profile.
The company plans to fully repay the Eurobond and the convertible bond maturing in 2026 as next steps. With the Castlelake financing, Peach Property Group has refinanced €530 mln of long-term liabilities on a secured basis, with bank valuations confirming their property valuations.
Gerald Klinck, CEO and CFO of Peach Property Group, said: “With the financing from Castlelake, we are successfully completing our comprehensive balance sheet transformation—following capital increases, extensive refinancings, and the portfolio transaction at the end of 2024. Our strategy of consistently focusing on secured financing has paid off in full. Taking into account a term sheet that has also been finalized, the entire financing volume will be in the secured market over the course of the year. We are now focusing on the performance of the strategic portfolio, the targeted sale of the non-strategic portfolio, and the sustainable increase in shareholder value.”
Michael Zahn, chairman of the Board of Directors of Peach Property Group, added: “The new management team, which has been on board for around a year, has done an excellent job in a challenging market environment and fully met our expectations. Special thanks also go to our shareholders, who have invested a total of over €170 mln in the Company through two capital increases, thereby significantly reducing our financial leverage. Their trust and commitment are making a major contribution to the repayment of the previous, unsecured financings. Peach Property Group is now in an excellent financial position and strategically on the right track.”
Peach Property Group's portfolio consists of high-yield rental apartments primarily located in German Tier-II cities near metropolitan areas. Additionally, Peach Property Group develops select properties in Switzerland for condominium sales, with the Peninsula Wädenswil project as a recent example.