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CORESTATE acquires further value-add commercial property in Munich

CORESTATE has acquired a further value-add commercial property in Munich with an investment volume of around EUR 54 million. The value creation potential of the property will be leveraged as part of CORESTATE’s manage-to-core strategy. The deal has already been signed, closing is scheduled for the end of May 2019.

 

CORESTATE acquires further value-add commercial property in Munich

  • Investment amount of around € 54 million
  • Added value through proven manage-to-core strategy
  • Property located in sought-after East Munich


Frankfurt, 4 April 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, has acquired a further value-add commercial property in Munich with an investment volume of around EUR 54 million. The value creation potential of the property will be leveraged as part of CORESTATE’s manage-to-core strategy. The deal has already been signed, closing is scheduled for the end of May 2019.

“We will turn this property into an attractive asset for both tenants and investors again, essentially through modernisation. The main value driver for us is the current leasing potential of the property. Although its current occupancy rate is 88 percent, which means that its cash flow is high, we expect rental income to increase by around 30 percent after modernisation, given the average rents achievable in the area. Following completion of renovation works, we seek to achieve full occupancy and a significant increase of the property’s profitability while creating long-term value”, said Thomas Landschreiber, Co-Founder and Chief Investment Officer of CORESTATE.

The property, located at Am Schatzbogen, has a total GLA of 22,635 sq.m and 260 parking spaces. Just under two-thirds of space is used for offices, 15% for storage and the rest consists of production areas, a nursery and other types of use. The property has a diversified tenant base, is in good condition in terms of technological infrastructure and conveniently situated in an established micro location in Munich’s East which is becoming increasingly attractive for office space. The transport links are very good; travelling by car from the city centre, the location can be reached in just over 15 minutes.

CORESTATE has a long-standing track record with its manage-to-core active asset management approach. The company invests in real estate with value-add potential leveraged through modernisation, repositioning and leasing. This approach allows the company to generate double-digit returns, making these investments particularly attractive for its clients.

IR Contact
Dr. Kai Gregor Klinger
T: +49 69 3535630107 / M: +49 152 22755400
ir@corestate-capital.com

PR Contact
Jorge Person
T: +49 69 3535630-136 / M: +49 162 2632369
jorge.person@corestate-capital.com

About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 25bn in assets under management. As a fully integrated real estate platform, CORESTATE offers its clients combined expertise in the areas of investment and fund management as well as real estate management services. The company operates as a respected business partner of institutional clients and wealthy private investors internationally. CORESTATE is headquartered in Luxembourg and has 42 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 730 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange.

Forward-Looking Statements
This press release may contain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our company and the estimates given here. These factors include those discussed in our public reports, which are available on our website at [ir.corestate-capital.com]. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.

 

04/12/2019

Ad Hoc Announcement: Corestate Capital Holding S.A. resolves on implementation of second tranche of announced share buy-back programme

04/01/2019

Ad Hoc Announcement: CORESTATE Capital Holding S.A. resolves on share buy-back programme

The management board of CORESTATE Capital Holding S.A. with its registered office in Luxembourg, ISIN LU1296758029 (the "Company") today resolved, with the consent of the supervisory board, to make use of the authorisation to purchase treasury shares as resolved by the annual general meeting of the Company on 27 April 2018 and to purchase up to 500,000 treasury shares in the period from 1 April 2019 to (and including) 25 April 2019.

03/29/2019

CORESTATE funds value-add property in Munich with EUR 39m IKB loan

CORESTATE has found an attractive debt financing partner in IKB Deutsche Industriebank AG (IKB). The partners agreed on a project financing loan of EUR 39m with a three-year maturity for a value-add property in Munich.