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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.

 

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

  • CORESTATE wins IKB Deutsche Industriebank AG as financing partner
  • € 39 million loan for value-add property in Munich
  • Office complex to be repositioned with “Manage to Core” strategy
  • Total investment volume of around 66 million euros


Frankfurt, 29 March 2019 – CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, 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. The asset was acquired in a club deal CORESTATE announced on 5 February 2019. The office building is to be repositioned using a “Manage-to-Core” strategy. The total investment volume amounts to approximately EUR 66m.

The project financing provided by IKB consists of a EUR 28m purchase loan as well as an additional EUR 11m credit line for capex. Matthias Heimann, Head of Debt Advisory at CORESTATE: “I am delighted to be working with IKB as a lender for project financing for the first time. The financing package we have been provided with is characterized by favourable terms and a high level of flexibility, both important features for the intended repositioning. We are convinced that, with IKB, we have a very professional partner to accompany the realization of the project.“

“The office complex has total leasable space of some 13,000 sq.m., of which roughly 75% are currently leased to multiple tenants. The property offers far-ranging opportunities to create new long-term value. In addition to renovations and improvements to the existing structure, for example, leasable space will be significantly expanded through the construction of a new multi-story office pavilion on an adjacent plot which is currently used as a car park but already approved for development,“ says Thomas Landschreiber, CORESTATE’s Co-Founder and Chief Investment Officer.

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

04/04/2019

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.

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.