Helvetic Financial Services (HFS) AG, a wholly-owned subsidiary of CORESTATE, has exceeded the Euro 1.2bn fund volume mark for the first time. The mezzanine finance provider has thus extended its market leadership in the real estate development financing segment in Germany. HFS currently provides financing for around 60 projects with a combined volume of Euro 7bn, nearly 80% of which are residential.
Helvetic Financial Services (HFS) AG, a wholly-owned subsidiary of CORESTATE Capital Holding S.A. (CORESTATE), has exceeded the Euro 1.2bn fund volume mark for the first time. The mezzanine finance provider has thus extended its market leadership in the real estate development financing segment in Germany. HFS currently provides financing for around 60 projects with a combined volume of Euro 7bn, nearly 80% of which are residential. CORESTATE bought HFS one year ago.
“HFS is a great example for the effective integration and enhancement of an already successful business model in the CORESTATE Group,” said Dr Michael Bütter, CEO of CORESTATE. “HFS provides a considerable contribution to the Group’s total earnings, without us taking any Project Development risks of our own. In the course of the integration, we have already realized first substantial synergies for our clients, but we are only at the beginning here and expect more to come.”
Supplementing traditional real estate banks, HFS offers subordinated capital and has emerged as one of the major project financier for urgently needed residential development in German metropolitan areas. Some 60% of the financed real estate projects are located in Germany’s top seven major cities, known for her structural demand surplus.
Tim Schymik, COO of HFS: “Over the past 12 months alone, under the umbrella of CORESTATE, we are proud to have raised the fund volume by well over Euro 150m. Our experienced real estate development specialists are able to very precisely assess and control our respective projects. This has prevented the conditions for even a single default for our investors since the fund was established. Our customers and financing partners appreciate our many years of expertise, acknowledging it with the deep trust they place in us.”
Dr Michael Bütter added: “HFS’s unique market penetration ideally complements our range of services as an investment manager, the company having become a guarantee of success for our integrated business model after only a year. The first quarter figures already confirm that in impressive fashion and we are very confident that we will achieve our corporate financial targets for the full year”.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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