CORESTATE has found an attractive debt financing partner in IKB Deutsche Industriebank AG (IKB). The partners agreed on a project financing loan of Euro 39m with a three-year maturity for a value-add property in Munich.
Frankfurt, 29 March 2019 – CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, has found an attractive debt financing partner in IKB Deutsche Industriebank AG (IKB). The partners agreed on a project financing loan of Euro 39m with a three-year maturity for a value-add property in Munich. The asset was acquired in a club deal CORESTATE announced on 5 February 2019. The office building is to be repositioned using a “Manage-to-Core” strategy. The total investment volume amounts to approximately Euro 66m.
The project financing provided by IKB consists of a Euro 28m purchase loan as well as an additional Euro 11m credit line for capex. Matthias Heimann, Head of Debt-Financing at CORESTATE: “I am delighted to be working with IKB as a lender for project financing for the first time. The financing package we have been provided with is characterized by favourable terms and a high level of flexibility, both important features for the intended Repositioning. We are convinced that, with IKB, we have a very professional partner to accompany the realization of the project.“
“The office complex has total leasable space of some 13,000 sq.m., of which roughly 75% are currently leased to multiple 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 plot which is currently used as a car park but already approved for development,“ says Thomas Landschreiber, CORESTATE’s Co-Founder and Chief Investment Officer.
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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