CORESTATE has acquired a further value-add commercial property in Munich with an investment volume of around Euro 54 million. The value creation potential of the property will be leveraged as part of CORESTATE’s manage-to-core strategy. The deal has already been signed, closing is scheduled for the end of May 2019.
Frankfurt, 4 April 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading European real estate investment manager, has acquired a further value-add commercial property in Munich with an investment volume of around Euro 54 million. The value creation potential of the property will be leveraged as part of CORESTATE’s manage-to-core strategy. The deal has already been signed, closing is scheduled for the end of May 2019.
“We will turn this property into an attractive asset for both tenants and investors again, essentially through modernisation. The main value driver for us is the current leasing potential of the property. Although its current occupancy rate is 88 percent, which means that its cash flow is high, we expect rental income to increase by around 30 percent after modernisation, given the average rents achievable in the area. Following completion of renovation works, we seek to achieve full occupancy and a significant increase of the property’s profitability while creating long-term value”, said Thomas Landschreiber, Co-Founder and Chief Investment Officer of CORESTATE.
The property, located at Am Schatzbogen, has a total GLA of 22,635 sq.m and 260 parking spaces. Just under two-thirds of space is used for offices, 15% for storage and the rest consists of production areas, a nursery and other types of use. The property has a diversified tenant base, is in good condition in terms of technological infrastructure and conveniently situated in an established micro location in Munich’s East which is becoming increasingly attractive for office space. The transport links are very good; travelling by car from the city centre, the location can be reached in just over 15 minutes.
CORESTATE has a long-standing track record with its manage-to-core active asset management approach. The company invests in real estate with value-add potential leveraged through modernisation, Repositioning and leasing. This approach allows the company to generate double-digit returns, making these investments particularly attractive for its clients.
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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