CORESTATE has structured an attractive financing package for the “MIKA Quartier” property in Dresden that takes into account the growing ESG requirements of institutional investors. CORESTATE has secured EUR 27 million in debt financing from Bayerische Landesbank (BayernLB) at particularly competitive conditions and with a term of 10 years. The total loan consists of a classic bank loan and KfW funds. MIKA Quartier is a property in the portfolio of the open special-AIF “CORESTATE Residential Germany III” (CRG III) aimed at institutional investors.
Frankfurt, October 14, 2019 – CORESTATE Capital Holding S.A. (CORESTATE), a leading independent real estate investment manager in Europe, has structured an attractive financing package for the “MIKA Quartier” property in Dresden that takes into account the growing ESG requirements of institutional investors. CORESTATE has secured EUR 27 million in debt financing from Bayerische Landesbank (BayernLB) at particularly competitive conditions and with a term of 10 years. The total loan consists of a classic bank loan and KfW funds. MIKA Quartier is a property in the portfolio of the open special-AIF “CORESTATE Residential Germany III” (CRG III) aimed at institutional investors.
Lars Schnidrig, CEO of CORESTATE Capital Group: “Following the successful placements of the predecessors CRG I and II, the latest edition of our successful fund series meets the sustained high customer demand for investments in high-quality residential real estate in Germany. With BayernLB as our long-standing and trustworthy partner, we have been able to gain a high-performance banking partner for the attractive MIKA Quartier, from whom our customers will benefit in terms of extensive experience, high reliability and in-depth knowledge of the market.”
The new building project MIKA (An der Elbaue / Flößerstraße), which is about to be completed, has total rental space of nearly 15,000 m² with 179 high-quality rental apartments, 3 commercial units and 145 underground parking spaces. The residential building is located in an attractive district in the north of Dresden with a very good traffic, shopping and leisure infrastructure.
Matthias Heimann, Head of Debt Finance & Debt Advisory: “In close and constructive cooperation with BayernLB, we have combined conventional long-term financing with excellent conditions from BayernLB and used KfW subsidies for energy-efficient construction. We have thus succeeded in structuring an attractive financing package for this property in line with our ESG criteria, which is entirely in line with our investors’ requirements.”
CRG III, which was launched in the first quarter of 2019, focuses on new residential properties in metropolitan regions and prospering cities throughout Germany. The fund has a planned minimum target volume of EUR 300 million with an average annual yield distribution of at least 4 percent.
About Hannover Leasing
For more than 35 years, Hannover Leasing has been one of the leading providers of tangible assets in Germany. A total of around 70,000 private and institutional investors have invested around EUR 10.3 billion in the group’s funds. Hannover Leasing currently manages assets amounting to 9.8 billion euros. With its subsidiary HANNOVER LEASING Investment GmbH as a capital management company (KVG), Hannover Leasing has the prerequisites to design and manage open and closed special AIFs for institutional investors as well as closed public AIFs for private investors. One focus is on the asset class real estate (national / international). Hannover Leasing is a company of the CORESTATE Capital Group (CORESTATE).
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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