EQS-Adhoc: Peach Property Group changes Board of Directors and announces details of cost-cutting programme

EQS Group-Ad-hoc: Peach Property Group AG / Key word(s): Change of Personnel Peach Property Group changes Board of Directors and announces details of cost-cutting programme

2015-03-20 / 18:38 Release of an ad hoc announcement pursuant to Art. 53 KR. The issuer is solely responsible for the content of this announcement.

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Press release

Peach Property Group changes Board of Directors and announces details of cost-cutting Programme

- Reduction of Board of Directors to three members - New President of Board of Directors nominated - Programme to cut costs by CHF 2.5 million annually - CEO forgoes part of fixed salary

Zurich, 20 March 2015 - Peach Property Group, a leading investor in residential and commercial real estate, today announced changes on its Board of Directors. The Board will be downsized from currently six to three members. At the same time, Reto A. Garzetti, who has great property and finance expertise, will be nominated for election as the new President of the Board of Directors at the General Meeting to be held on 8 May 2015.

Reto A. Garzetti (55) studied business administration with an emphasis on banking sciences / commercial and securities law at the University of Zurich. He has dual Swiss/Italian citizenship. His work is focused on the property, pharmaceutical and mechanical engineering sectors. He is a member of several Boards of Directors of different companies in Switzerland and the United States. Since 1999, Mr. Garzetti has been a partner and a vice president of the Board of Directors of investment consulting company SE Swiss Equities AG in Zurich. He is also a member of the Board of Directors of global pharmaceutical company Siegfried Holding AG. Further Board of Director memberships in the real estate area in Switzerland include Meili & Peter Architekten AG, HFS Helvetic Financial Services AG as well as AGI AG. In the United States, Mr. Garzetti is a member of the Board of Directors of Southeastern Technologies Inc. and Setech Inc.

The Group's President, Dr. Corinne Billeter-Wohlfahrt, as well as the members of Peach Property Group's Board of Directors, Dr. Christian Wenger and Dr. Thomas Wolfensberger will not stand for re-election at the General Meeting. Going forward, Dr. Thomas Wolfensberger will fully devote himself to his work as the Group's Chief Executive Officer (CEO). In this capacity he will be pushing ahead with the strategy of increasing the focus on investment properties aimed at increasing value and of implementing standardised property development. In the context of the organisational streamlining, Martin Eberhard resigns from his post as a Board member with immediate effect. The other members of the Board of Directors, Peter E. Bodmer and Dr. Christian De Prati will be nominated for further one-year terms of office.

The Board of Directors thanks its departing members for their untiring work for the Group.

At the same time, the Group disclosed initial details of the cost-saving programme announced at its financials press conference on 10 March 2015. In agreement with the Board of Directors, CEO Dr. Thomas Wolfensberger will forgo a large portion of his annual fixed salary, which will be reduced by CHF 200,000 to CHF 350,000. Coupled with other measures, the Group aims to create a package by the end of the first half-year that will result in annual cost savings of at least CHF 2.5 Mio.

Dr. Thomas Wolfensberger commented: "Last year Peach managed to boost its rental income to more than CHF 10 million. At the same time, we reduced our annual operating expenses by CHF 4 million in the past two years. Now that the largest development projects have been completed, we will be able to reduce our cost base even further. At the same time, we will enhance our asset management expertise for property portfolios. The changes, which affect our entire Group, all aim to ensure a sustainable and profitable future."

Contacts:

Media, investors and analysts Dr. Thomas Wolfensberger, Chief Executive Officer and Dr. Marcel Kucher, Chief Financial Officer +41 44 485 50 00 | investors@peachproperty.com

Media Germany edicto GmbH, Axel Mühlhaus, Peggy Kropmanns +49 (0) 69 90 55 05 52 | amuehlhaus@edicto.de

About Peach Property Group AG

Peach Property Group AG is a property investor and developer focused on investments in Switzerland and Germany. The portfolio includes an increasing number of investment properties that are designed to generate sustained income as well as attractive residential development properties. The Group's activities cover the entire value chain, from site evaluation to project planning, implementation and marketing. In the investment segment, the Group is focused on properties with a potential for achieving attractive yields based on active asset management - typically secondary locations in the catchment area of urban agglomerations. In the development segment, the Group concentrates on exceptional locations and properties with high-end specifications and amenities that meet the requirements of a demanding clientele.

Peach Property Group AG is headquartered in Zurich and has its German Group headquarters in Cologne. Peach Property Group AG is listed on the SIX Swiss Exchange (PEAN, ISIN CH0118530366).

For more information, see www.peachproperty.com

End of ad hoc announcement

+++++ Additional features:

Document: http://n.equitystory.com/c/fncls.ssp?u=LBKQCKUQLG Document title: Press release

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2015-03-20 News transmitted by EQS Schweiz AG. www.eqs.com - news archive: http://switzerland.eqs.com/de/News

The issuer is responsible for the contents of the release.

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Language: English Company: Peach Property Group AG Seestrasse 346 8038 Zürich Switzerland Phone: +41 44 485 50 00 Fax: +41 44 485 50 11 E-mail: investors@peachproperty.com Internet: www.peachproperty.com ISIN: CH0118530366 Valor: A1C8PJ Listed: Regulated Unofficial Market in Berlin, Stuttgart; Open Market in Frankfurt ; SIX

End of News EQS Group News-Service =-------------------------------------------------------------------- 335763 2015-03-20 (END) Dow Jones Newswires

   March 20, 2015 13:38 ET (17:38 GMT)- - 01 38 PM EDT 03-20-15