CORESTATE Capital Holding S.A., headquartered in Luxembourg, is a fully integrated real estate investment manager and co-investor with approx. €22bn in assets under management. Together with its subsidiaries, CORESTATE provides the full range of asset, fund, and property management services for its clients and related investment products, covering virtually all major real estate asset classes, including high-quality office assets and all relevant investment vehicles comprising mezzanine real estate financing.
Our client base consists of private individuals and semi-institutional as well as institutional clients. The Group’s key market is Germany and has selected activities in other European countries such as Austria and Spain. Our operating principal offices are in Germany, Switzerland, Spain and Singapore. After the successfully completed acquisition of Hannover Leasing, HFS Helvetic Financial Services AG (HFS) and ATOS Capital, the Group employs more than 530 FTEs. CORESTATE is listed on the Frankfurt Stock Exchange.
Strategic corporate development
With the portfolios brought in by Hannover Leasing, HFS Helvetic Financial Services AG (HFS) and ATOS Capital, CORESTATE now covers virtually all major real estate asset classes, including high-quality office assets and all relevant investment vehicles comprising mezzanine real estate financing. Our enhanced competitive positioning allows us to realise cross-selling and synergy potentials. CORESTATE expects a further increase in its investment volume, which will particularly be fuelled by the launch of additional investment product offerings and our advanced investment strategy for managed accounts of renowned clients. On top of that, the more diversified CORESTATE offers an excellent platform for further driving the consolidation process within our industry, which is still fragmented.
Residential: CORESTATE has increased the number of its micro-apartments to 6,000 units, thus strengthening its market position as the leading investor and manager of micro-apartments in Germany, Austria and Switzerland. CORESTATE is planning to invest another €200m investment volume in the segment of micro-apartments for students, young professionals and commuters over the next 12 months and to develop 1,200 new units. In doing so, the group’s focus will be on selected German and Austrian university cities, such as Berlin, Frankfurt/Main, Munich and Vienna. In big cities, the market for temporary housing is now well established and shows enormous growth potential. For the foreseeable future, no decrease in the demand for this asset class can be expected – neither from investors nor from the financing banks and the target group.
Retail: Together with other investors, CORESTATE now owns and manages more than 140 retail properties in prime city-centre locations in mid-sized German cities, including eight shopping centres. The portfolio is valued at over €1.2bn. The high street investment strategy aims at assembling an extensive and highly diversified portfolio of top retail properties. CORESTATE has been focusing on the secondary high street segment since 2014. Between core assets in the ‘Big 7 cities’ on the one hand and comparable assets in medium-sized cities on the other, a significant difference in yields to be achieved still persists and will continue to do so. Business premises and small shopping centres in prime downtown locations, such as the high streets of German medium-sized cities, offer risk-adjusted prime yields that are fortified by location, asset quality and tenants.
Investment principles & strategy
As an Investment Manufactory, we demonstrate a high degree of entrepreneurial creativity and flexibility, which is reflected in the development of our investment products. These are always aligned with current market phases and macro-economic trends. While the company focused primarily on residential real estate in the early years, our investment focus subsequently shifted to include micro-apartments for singles, commuters and students, and ultimately retail properties. We will continue to readjust our focus whenever we identify economic potential in new segments.
CORESTATE is a trusted partner for Family Offices / UHNWI, Institutional Investors / Pension Funds and Retail Investors. As a fully integrated investment and management platform we understand the DNA of our assets and provide investment products and corresponding services that create a lasting value for our clients. Our platform encompasses investments across the risk spectrum from core to opportunistic.
Commentaries on economy and financial markets contained in this publication are based on information believed to be reliable, although there can be no guarantee as to its accuracy. They reflect the current opinion of CORESTATE, which is subject to change based on the development of the economy and financial markets.
News from CORESTATE Capital (Real Estate)
CORESTATE acquires and manages newly built micro-apartments worth EUR 670m for Bayerische Versorgungskammer download
CORESTATE Capital Holding S.A. has acquired five project developments comprising a total of over 1,700 newly built micro-apartments in Germany.
CORESTATE completes the HFS acquisition by early refinancing – HFS acquisition - funding costs reduced by 80% download
CORESTATE Capital Holding S.A. today announces the full repayment of an HFS acquisition loan with a total nominal amount of EUR 150m.
CORESTATE Capital Holding S.A. has successfully divested a club deal investment in a EUR 432m development project in Vienna.
CORESTATE Capital Holding S.A. announces today the successful placement of senior, unsecured convertible bonds, due 2022 in an aggregate nominal amount of EUR 200 million.
CORESTATE Capital Holding S.A. to launch EUR 150 million convertible bond offering with EUR 50 million upsize option download
The Management Board of CORESTATE Capital Holding S.A. resolved today, with the consent of the Supervisory Board to launch an offering of senior, unsecured convertible bonds, due 2022 in an initial aggregate nominal amount of EUR 150 million.
News from IPE Real Estate
Joint venture buys in Flensburg, Lübeck for club
Move comes 12 months after Swiss manager abandoned IPO
Private equity platform targets high street retail assets off beaten track
Real estate company cancels initial public offering
Listing on Frankfurt Stock Exchange planned 10 years after inception
White Papers / Research from CORESTATE Capital (Real Estate)
Investors’ interest in the asset class of retail parks and retail park oriented shopping centers remains high. This is primarily due to the favorable risk/return ratio and the overall good performance of this asset class. Luxemburg-based Corestate Capital Group is currently also assessing the possibility of investing in a new retail portfolio with a total of ten retail parks. Sascha Wilhelm, CEO of Corestate, dicusses these issues.
Commercial Real Estate Financing in Germany: Survey on Real Estate Financing and Distressed Real Estate Debt - September 2014 download
This survey is a consistent continuation of the work done by the CORESTATE Research Unit for Distressed Real Estate Debt. In 2012, REMI’s discussion paper No. 4 focused on the market for distressed real estate assets and investigated the financing and investment climate in order to identify potential opportunities and threats to investors. Based on this paper, a survey about the current situation on the commercial real estate financing market is conducted annually among decision-makers ...
Commercial Real Estate Financing in Germany: Survey on Real Estate Financing and Distressed Real Estate Debt - October 2013 download
Commercial Real Estate Financing in Germany: Survey on Real Estate Financing and Distressed Real Estate Debt - September 2012 download
Research Centre for Distressed Real Estate Debt
Analysis from IPE Real Estate
Pension funds BVK and ÄVWL are pushing their property allocations beyond 20%. Barbara Ottawa reports on the challenges they face
Investors are regaining confidence in the Spanish capital which is one of the few European markets where prime office rents are rising, finds Russell Handy
Is continental Europe about to catch up with the UK in turning student housing into an institutional market? Russell Handy takes notes
Global distressed debt investors have turned their attention to Europe as banks deal with problematic property loans. Lynn Strongin Dodds reports
Will 2013 prove a better year for distressed debt investors and are high double-digit returns a realistic prospect? Lynn Strongin Dodds explores