Corporate overview

CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with more than EUR 28 billion 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, e.g. in Frankfurt, London, Paris, Madrid, Zurich and Amsterdam. The company employs around 800 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Further information may be found at www.corestate-capital.com.  

Our Mission: We develop innovative, sustainable and profitable investment solutions for our clients in order to facilitate their real estate strategies. In doing so, we combine our many years of real estate expertise, market knowledge and consideration of mega trends and ESG principles. In doing so to achieve optimal performance and sustainable returns for our clients.

 

 

Strategic corporate development

CORESTATE is a trusted partner for institutional investors/pension funds, family offices / UHNWI and private 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.

Sector forecasts

OFFICE: The office sector has been the one with the highest transaction volume in the German commercial real estate market since 2013. High demand in the metropolitan areas, low vacancy rates and the pressure to invest have pushed prices to a plateau – where we expect them to remain over the mid-term. Framework conditions such as the strength of the German economy certainly remain auspicious for the sector.

RESIDENTIAL: We still see a strong development of the residential investment market in Germany, with rising transaction volumes and a strong product offering. Yet we believe that the prices we see in the market are at the upper end of the spectrum. Yield compression is limited to prime locations and cities. For our institutional investment products, we focus investments on sustainable, attractive micro-locations in strong A- and B-cities to safeguard an attractive risk-return profile (see micro-living below as extension of residential).

RETAIL: Many investors have become extremely cautious of retail as shifting consumer preferences and demands are providing for a massive change in the sector. Not all retail schemes will survive this shift but we are confident that food- and convenience-anchored retail remains attractive. Looking at the high street, some retail schemes will be replaced by gastronomy or event-driven concepts but the underlying mixed-use asset is still a good investment.

OTHER: Micro-living has become an own and growing asset class. A substantial supply-demand imbalance in single-person housing across Europe offers significant development and investment potential over the coming years. The demand is driven by several mega-trends, including urbanisation. We are seeing population increases in cities with strong economies that offer good job prospects and excellent universities. These locations are attracting workers willing to travel to find employment as well as the student population – and both are looking for micro-apartments.

Investment principles & strategy

As an investment manufactory, we demonstrate a high degree of entrepre- neurial 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 CORESTATE 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. Today the group also focuses on hotels, office buildings and urban districts. We will continue to readjust our focus whenever we identify economic potential in new segments.

Strategic Corporate Development

CORESTATE is a trusted partner for institutional investors/pension funds, family offices / UHNWI and private 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.

Performance verification

Performance of each portfolio is measured against the relevant benchmark(s) that are the accepted standard(s) for each of the vehicles under management. Additional performance information can be provided on request for a number of our strategies.

Compliance Statement

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.