Corestate Capital Holding S.A.: CORESTATE launches European value-add investment program
DGAP-News: Corestate Capital Holding S.A.: CORESTATE launches European value-add investment program
DGAP-News: Corestate Capital Holding S.A. / Key word(s): Miscellaneous
27.07.2018 / 07:30
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CORESTATE launches European value-add investment program
CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, is launching a new investment program for its Club Deal clients, which will invest in value-add retail, office and residential buildings in mid-sized European cities.
The diversified multi-club-deal investment program will target private investors, family offices and institutional investors. CORESTATE is taking an active asset management approach with a ‘manage-to-core’ strategy and will invest in undermanaged properties that offer value creation potential through renting, modernizing or repositioning these properties. The focus will be on the German market, but acquisitions may well also include individual properties in Spain, the Netherlands, Poland and the UK. The investment horizon is five years, target IRR is 16%. The program with a target volume of EUR 100-150 million will be structured as a Luxembourg-domiciled closed-end Reserved Alternative Investment Fund (RAIF). CORESTATE will ensure alignment of interest by co-investing in the program.
Thomas Landschreiber, Co-Founder and Chief Investment Officer of CORESTATE: “We have identified not only more investor interest in the value-add segment but also a host of asset opportunities for a manage-to-core strategy in mid-sized European cities. A lot of properties need refurbishment and modernization in order to meet changing customer and tenant needs. The European value-add program will benefit from these developments.”
Several seed assets are already in the pipeline. They are characterized by an existing high cash flow in combination with vacancies. These types of assets enable CORESTATE to improve its overall performance by using its active asset management approach. The closing of the fund is expected later this year. By then, the program will encompass secured assets as well as a stable project pipeline.
“With the European value-add program, we will continue our strong Club Deal track record of delivering double-digit returns and seizing on short-term investment opportunities,” adds Boris Pauli, Managing Director Client Relations, based in CORESTATE’s office in Zurich, Switzerland. “The short maturity, transparent structure and low minimum investment support the attractive investment case for multi-family offices and private banks in particular.” The program was launched specifically to meet the wishes of existing clients, which include the fund structure and the possibility to book the investment directly via their bank depot.
Dr. Kai Gregor Klinger
Phone: +49 69 3535630107 / Cell phone: +49 152 22755400
Phone: +49 69 3535630-108 / Cell phone: +49 174 4022348
About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with approximately EUR 22bn 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 41 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 560 people and is listed in the regulated market (SDAX) of the Frankfurt Stock Exchange.
Further information is available at www.corestate-capital.com.
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.