CORESTATE has acquired an office complex in Munich. The property, representing a total investment amount of approx. Euro 66 million, is to be repositioned using a “Manage-to-Core” strategy. CORESTATE will offer the property to investors as a club deal. The deal signing has already been completed, with closing scheduled for the end of March 2019.
Frankfurt, 5 February 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, has acquired an office complex in Munich. The property, representing a total investment amount of approx. Euro 66 million, is to be repositioned using a “Manage-to-Core” strategy. CORESTATE will offer the property to investors as a club deal. The deal signing has already been completed, with closing scheduled for the end of March 2019.
“Through the lease agreements which are already in place, the property is generating stable cash flow,” says Thomas Landschreiber, co-founder and Chief Investment Officer of CORESTATE Capital Group. “Moreover, we see a number of opportunities to boost ongoing rental income. The investment thus offers, as a whole, an excellent starting point for further raising the property’s existing appreciation potential through our active management approach. We bring a long and proven track record in this area, and the interest among our clients for value-add holdings offering the potential for double-digit returns remains unabated.”
In managing this investment holding, CORESTATE will carry out its active asset management approach, successful over many years, using a “Manage to Core” strategy, meaning that the company is investing into properties with existing appreciation potential which may be further raised through modernisation, Repositioning and new lease agreements.
The office complex has total leasable space of some 13,000 sq.m., of which roughly 75% is currently leased out to multiple individual tenants. The property offers far-ranging opportunities to create new long-term value. In addition to renovations and improvements to the existing structure, for example, leasable space will be significantly expanded through the construction of a new multi-story office pavilion on an adjacent lot belonging to the property which is currently being used as a car park but already approved for development. The plan calls for all space to be fully leased out by the end of 2020, when all of these measures are scheduled for completion, with aamundo Immobilien Gruppe serving as developer for the expansion and revitalisation project.
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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