Peach Property Falls as 2013 Loss Seen on ProjectsZoe Schneeweiss
Peach Property Group Ltd. fell the most in more than two years after the Swiss developer of luxury homes said it would report a loss this year after unexpected costs related to construction projects.
The shares declined as much as 10 percent, the biggest intraday decline since September 2011, and were down 9.3 percent at 9.98 francs at 1:30 p.m. in Zurich, where Peach Property is based. That gave the company a market value of 48.8 million francs ($54 million). Almost 37,000 shares traded hands, more than seven times the average daily volume of the past three months.
Peach Property will have additional costs of about 15 million euros after the insolvency of its general contractor on two of its projects in Berlin, according to a statement on Oct. 4 after markets closed. The “vast majority” of these costs will affect this year’s earnings, which are “expected to be negative as a result,” it said.
The company expects the projects to generate net returns of around 55 million francs, compared with a previous forecast of 75 million francs, it said.