CORESTATE 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 investment horizon is five years, target IRR is 16%. The program with a target volume of Euro 100-150 million will be structured as a Luxembourg-domiciled closed-end Reserved Alternative Investment Fund (RAIF).
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 Euro 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.
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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