Hello and welcome to Peach Property Group's July 1st conference call and webcast. There will be a question-and-answer session at the end of the presentation. Questions will be taken by phone only. I will now hand over to Gerald Klinck, CEO. Please go ahead.
Yeah, hi, and good morning to all of you. Welcome to our management call here for our equity raise or equity offering, which we announced yesterday with our ad hoc. Last time when we met here in these kind of calls, it was our full-year result call. I want to give you here some updates on what's going on with Peach, especially on financing, some comments to operational improvement and non-strategics. Let's also talk about the equity raise and the usage out of it. I have a little bit of slides here in front of me, and hopefully you can see that. I want to guide you here to the slides. Maybe on page four, you see what was changing here in our last AGM, and that is Swiss law.
We have technically here to ask our shareholders every year about the composition of the board. We have a slight change here. We welcome Alexander Hesser here in our board of directors, and Eric Asimakopoulos went out. That is more or less the same board of directors which you saw also last year. I am very happy to have Alexander here with his competencies here on the board. On the next page, you see our agenda for today. Peach, at a glance, that is a little bit of housekeeping or services for people who visit us here or meet us first time. I do not want to touch here every data because that is pretty well known from our last call. It is also on our websites, but it gives you a little bit the most important KPIs and strategic numbers here for our portfolio.
I give you an update on financing and what was on there, a little bit of operational and non-strategics, as I mentioned before. Some technical but also commercial issues on the equity raise. I will comment on our guidance. After that, I'm very happy to answer all your questions which you raise. Next page, as I mentioned, these are numbers based on our published full-year results. I do not want to jump really here into it. We do not see really, let's say, specific or big changes here in the numbers. We will come out with our half-year results in August, and then we touch base on that and can, and then we can dig a little bit deeper in all these details. Same on the next page. We have here the same situation, our portfolio than in the, than before.
We made progress, as you all know, last time, with our sale of our portfolio with 5,000 units to one specific partner here with a joint venture partner last year. The portfolio at the moment is more or less the same which you know before. On the timeline, on page eight, you see what happened so far when we met last time. The green hooks here are what we did afterwards. Let's focus on the lower part in March and June 2025. We were able to sign a term sheet and now also docs with a facility of EUR 120 million. We are very happy to do that or to did it because that also shows us that we are able to raise new money in the German market. It's a secured facility.
We are very proud to find someone to give us here the trust and follow us with our strategy. At the moment, we are in the drawdown process. We expect drawdown of this amount of EUR 120 million end of July, beginning of August. EUR 30 million from the EUR 120 million will be used to repay existing debt. We have a big number, EUR 90 million left, which we can use for other usage. As you see here, the main part of it, EUR 85 million, we want to use to repay our outstanding bond, which will mature in fifth of November, fifteenth of November. Let's say one part of the remaining or one half of the remaining amount is done. We were able to find a solution for that.
On the top line, you see our AGM, as I mentioned before, 23rd of May. We were able to ask our shareholders to support us with additional equity. We get a very big vote for that. More than 97% of our shareholders support us here in increasing new 10 million shares. That is the topic of this call. At the moment, we want to execute that before summertime. We come to that later on. That is, or, and the usage, I will tell you later. We also discuss and negotiate here with our lenders on the maturing, secured fundings which matures here. These are our existing loans. It was more than EUR 200 million, which are due this year. One partner here, the saving bank here in Germany, which has an EUR 18 million facility. We were able to extend that for the next seven years.
That is also take off. There is one piece left. I come to that later. Update on financing. On page 10, this is a slide which you will know from us. We make an update here on the left-hand side. It is a big column here for 2025 maturities. One third is solved. The other two thirds are under, let's say, in progress to sort out. I jump on the next slide to give you here the details. All the remaining numbers are as they are. There are not really material changes in that. On the next page, and there I want to focus on maturities for 2025 and 2026. As I mentioned before, one third of EUR 576 million, which were due this year, we were able to sort out. You know that we sold, we repaid the promissory notes in March.
We also make a tender offer of the bond, EUR 127 million, also repaid in January. This is what we were able to refinance by the equity raise from last year and the net proceeds from the portfolio sale. Now the other two thirds are left. You see the slide, green one, that is the EUR 80 million which we also solved out. I start with here the remaining secured ones. This is only one facility with one bank, with one lender. We signed contract for the EUR 203 million. Valuation at the moment is in process. At the moment, I cannot see here some red flags. We are in good progress. We are looking forward to find a solution with that bank on this EUR 200 million facility. I expect signing of the new docs end of July, in August, something in that time frame.
As I mentioned before, at the moment, everything is on green lights here. The EUR 173 million remaining bond, as I mentioned before, we signed the secured loan, EUR 120 million, as I mentioned before. Let's say 50% of the one third is also done. Drawdown, as I mentioned, expected in end of July. We are left with the remaining piece of roughly EUR 85 million-EUR 90 million, which is left. We are in good contact with potential lenders on a EUR 100 million facility. We are discussing here two potential, let's say, facilities. One facility is really an unsecured facility. You can mention it as a mezz piece.
The other situation is what we are discussing is a whole loan where we want to repay existing debt and top it up with a new lender that we also have a net position of EUR 100 million then in place, which we can more or less use the whole amount for repayment of the remaining debt. Having said this, term sheets are signed for the last two-thirds or signed docs for 50% of the bond piece here. We are making good progress on our refinancings. We are really looking forward to find a solution here in Q3 this year to totally finance the maturing debt in 2025. Looking into the future, in 2026, EUR 60 million is maturing there. The big one is our convertible bond. The convertible bond matures after Q1 next year.
It's EUR 50 million facility. The other EUR 10 million is this secured financing with a lender here in Germany. That should not be a big issue to extend that. The EUR 50 million convertible bond, and that is the usage for the equity which we discuss here. We want to use primarily the equity from the equity raise to repay the bond, the convertible, next year. If we do that ahead of maturity, we will see. Obviously, if you have cash in your accounts, which you can use to repay it maybe ahead of maturity, we have to discuss. It's a little bit of timing issues also on the facilities which will be used for the outstanding bond.
More or less, put it in a nutshell, what I want to say is here, we are on a good track to have a full solution for our refinancing for 2025 and 2026. After these last pieces of the puzzle, Peach is then in a situation that we stabilized our refinancing. I would say the balance sheet is in good shape. I come to some kind of KPIs later on on that. In the next block, we have an update on operational and a little bit of our non-strategics. Unfortunately, I cannot give you here really numbers because we are very close to our half-year results, which I will come back to you in August. I want to give you a little bit of heads up what our COO is doing here.
Steffi is on board since March, made their first, their first progress. We are really focusing now on the vacancy reduction. I do not want to read here every bullet point, but the focus is really vacancy reduction, catch-up to market rents, due to the turnovers. Let's say it, the market rents is really under review because in former years, we are focusing more on market rents on the value, which has in their calculation. Now we are very deep here in our markets and find really good information updates on market rents, which gives us also a little bit more headroom for catch-up and rent increase due to our turnovers. Another really focusing point is our processes. There's headroom to, for, for improvement. One thing is here really the duration of the turnover process. We bring that down.
That means we have the new tenant a little bit earlier in place so that he's paying his rent earlier than before. That is also hard work for the whole team. This is what you have to do to increase your top line growth. We are really hard working on that. We are very proud that one of our IT providers gave us an award for our letting process. It is really with certified signature and really good digitalization thing, which helps us to be more efficient in the platform and also gives our new tenants a little bit more service. We are very proud that the award was won by us. That was in the first, let's say, months which Steffi did here, outlook for the second half year. Let's put it that way. We're focusing here on digitalization.
We are focusing on more services for our new tenants, for our new clients to make it easier to find us and to let it out. The other thing is, and this is more internally focused, to optimize our IT platform and make the platform more efficient. The other thing, and that is our duty, is to put our tenant improvements into account and have also smaller CapEx, which gives us yielding. This is something what everyone does here in the sector. We are really focusing on that. Now we have also money to do it and to spend CapEx in our assets to improve here our top line.
As I mentioned before, I come back to you in our half-year result call in August to give you here a little bit more light on that, a little bit more transparency and what is the development of the numbers here. In terms of our sales process due to the non-strategics, you can see on the map on the left-hand side what we sold out the last time. Now we are focusing on selling the remaining pieces. As you know, we have our Peach Points, which are our operators, let's say in the landscape here, with our assets. Four of 12 Peach Points are more or less impacted by these non-strategic sales. We decided that we have two of them. We are with external brokers, professional brokers, which are helping us to sell it down. It is not really a portfolio approach here for Minden and Dortmund.
These both Peach Points, more or less in the east of North Rhine-Westphalia or northeast, this is really selling our asset property by property. Therefore, you need help to have their contacts to potential investors, local investors, but also someone who comes maybe from all of Germany. There we focus on external brokers. The Peach Point Gelsenkirchen-Recklinghausen, which is roughly 90%, this is what we want to do by our own. This is a more or less concentrated portfolio because we concentrate really on these both cities, on Gelsenkirchen and Herne, which is driven here by Recklinghausen. We try to manage that by our own and find maybe an investor who is taking it as a small portfolio. Then there's the last one. It's a Peach Point Aircart, which is more or less in the southwest of North Rhine-Westphalia.
We prioritize our measurements here. In this portfolio, we see some upside with asset management to bring vacancy down and also look on financing on that portfolio, which is very attractive with low coupons. On the timeline, we say that is a little bit priority B or put it on the right-hand side of the timeline because we want to improve the assets first before we get rid of. At the moment, it is really focusing on Minden and Dortmund by external ones, Gelsenkirchen-Recklinghausen by our own. There are remaining scattered portfolios left, like in Hessen or in Bremen or parts of Bochum. These non-strategics, we do it by our own plus with external brokers. At the moment, we are good on the way. We put together all the data rooms.
We had roughly 65% of the assets in the market. We are collecting offers and, hopefully, we can execute the first notarization here in July. I will also keep you updated in my August call where I can talk a little bit of half-year results plus an outlook on the non-strategics. With that, coming to the equity raise on page 16, you see some milestones for the timeline, which is in front of us. The orange one is today. On the 3rd of July, we start the trading period with the rights, which will end up in the 9th of July. Trading is also, or the trading ends in the 9th of July. The end of subscription period is two days later. We expect, on the 16th-17th of July, the granting of the shares and the cash settlement.
We will upload the prospectus with all the details which you need today on our website. That way, you see all these data which you need to execute your rights if you want to. On page 17, it's a little bit this summary of the key takeaways from the prospectus in terms of the technique here. It is an equity raise of up to 10 million new shares. It's more or less 23% of our capital. Offer price will be CHF 5 per new share. The exchange ratio is for 32 old rights, or old shares, you will receive seven new ones. Given that, you can expect that it's not really 10 million in total. It's a little bit less.
I think we lose here a little bit more than 30,000 shares, but that is a technical issue given that the exchange ratio is 32 to 7 new ones. Net proceeds, as we know, we are listed in Switzerland. So it is CHF. If you take the exchange rate into account, deduct a little bit of fees and tax, we can assume that we can raise here EUR 52 million if all the rights are executed by investors. Hopefully that will occur. That number is, or that source is really used for repaying the convertible bond. You see if we are successful with 1%, then the convertible bond is refinanced. That is the logic behind that. You know that the exchange ratio of the bond is 1030, which is more or less 50% of the existing NTA.
We want to make really here clear that we want to, to change that convertible into equity. That is from our point of view, the best to do that, to manage the dilution for the existing shareholders. That is the reason behind it. A little bit of numbers and KPIs on page 18. You see NTA per share at the moment is CHF 1230. After the equity raise, it drops down to CHF 76. Obviously, if we are, have a, let's say, an equity raise with the CHF 5 is less. Discount to that, we are trading yesterday with a discount to TERP above 25%, which is, I think, an attractive offer for all our shareholders. Those who want to join us here, loan to value is dropping from 51% to 48%. That is really the clear, midterm guidance for us.
We want to decrease LTV down to 45%. Therefore, we are also on a good way to do so. Net debt is also dropping because we want to repay the convertible. Therefore, this money is jumping into the net debt. Number of shares, and this is very easy to calculate, roughly 10 million more than before. With that, I jump to page 20, the guidance, the guidance we gave last time. We stick to our like-for-like mental goals by more than 4%. Also, FFO on the same ballpark. LTV, as I mentioned before, is our midterm target. We are running into that number. The equity raise gives us the next step to do so. Vacancy on rent, also midterm, should be in the ballpark of 3-4%, hopefully closer to the 3 instead of the 4.
Clear focus on refinancing, as we mentioned before, and executing the non-strategics and improving the operational performance. From our last call, I had one question and I was not able to answer that or to give you more guidance on that. There was a question as, how can you guide, more or less a similar number on FFO by knowing that you lose 20% of your shares of your assets? That was a good question. I pointed out here some details for you to explain that. I think hopefully it helps you a little bit to understand us a little bit better. The FFO 2024 was in the ballpark of 18. The FFO impact of the portfolio we sold, that was roughly 6 million. We used the equity raise plus the net proceeds to repay more or less the unsecured debt.
Remember our offer of the bond and the promissory notes. That has an impact on interest. It is more or less EUR 8 million. We also had some maturities in 2024, which kicks in totally in 2025, where interest rates were very attractive from the past. Unfortunately, as we all know, interest rates rose. That has an impact of EUR 4 million. Operational improvements, which we, here, the schedule for 2025, due to a vacancy reduction, rent increase, cost savings, more efficiency on all these stuff, has an impact on EUR 5 million. As you all know, everything which you cannot put in these columns comes up with others, which is a slight number. Counting everything together, you are directly in our midterm guidance between EUR 18 million and EUR 20 million. It depends a little bit on the sales in the last half year.
If we get rid of some of our assets, that will have an impact. But knowing that is now half year, we will see maybe some closings of non-strategics in the second half, which obviously has an impact, but not a huge one. With that, I want to quit. Thank you for your attention here. I'm happy to answer all your questions. Heading back to the operator. Jenny, maybe you can take over here the process.
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. Should you wish to cancel your request, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. Once again, that is star one.
Should you wish to ask a question? Once again, ladies and gentlemen, please press star one. Should you wish to ask a question? There are no questions. Please proceed.
Unfortunately, no questions, but maybe also everything is clear, hopefully. Thank you very much for your attention. Hope to see and, and looking forward to, to hear you, maybe to see you also in future time, ladies, at the 27th of August with our half-year results. Thank you very much and goodbye.
Thank you, ladies and gentlemen. The conference has now ended. Thank you all for joining. You may always connect your line.