Peach Property seeks to raise EUR 40m from IPO

Swiss luxury property developer Peach Property Group aims to raise approximately CHF53.3 mln (EUR 40 mln) from its flotation on Thursday on the Main Standard of the Swiss stock exchange in Zurich. The proceeds will be used for new development projects in the German speaking countries of Switzerland, Germany and Austria.

The company already has 14 schemes and another 26 in the pipeline and claims the sector offers potential for further growth. Luxury residential sector demand has been shifting away from single-family dwellings to ultra luxury condominiums with hotel-like amenities in line with the rise in the number of High Net Worth Individuals (HNWI) in Europe. In 2009, the number of HNWIs rose by 12.5% to 3 million and is expected to grow by around 6.6% between 2008-2013.

Peach Property is also seeing its profits grow on the back of rising prices for luxury apartments. In the first half of 2010, the company booked net profit of CHF 16.6 mln after generating CHF 18.2 mln for full-year 2009.

The flotation is believed to be the second Initial Public Offering launched in Switzerland so far this year. Bank am Bellevue has been appointed as lead manager for the IPO.

Based in Zurich and Cologne, Peach Property has operations in Switserland, Germany and Austria. In September, the company acquired an 80% interest in the Am Zirkus 1 hotel project in Berlin from ING Real Estate Development. Following the deal, Peach Property manages the entire Am Zirkus project comprising a four-star hotel consisting of 311 rooms and a conference centre, as well as 87 residential units across 13,000 m² and a further 5,100 m² of retail and office accomodation