CORESTATE increased its share capital by 19.5% today and placed the resulting shares in full with long-term investors without discount to the market price. The Company has increased its share capital by € 313,978.65 through issuing 4,186,382 new shares with exclusion of subscription rights by a cash capital hike.
Luxembourg, 11 September 2020. Corestate Capital Holding S.A. (Corestate), a leading independent real estate investment manager in Europe, increased its share capital by 19.5% today and placed the resulting shares in full with long-term investors without discount to the market price. The Company has increased its share capital by € 313,978.65 through issuing 4,186,382 new shares with exclusion of subscription rights by a cash capital hike.
Corestate will use the proceeds from the issue of around € 74.6m primarily to reduce net financial debt in the short term. In addition, the capital measure also increases the entrepreneurial flexibility needed for further significant organic growth and the consistent return to the pre-crisis levels of corporate profitability.
The Company expects the overall market to pick up significantly in 2021, accompanied by marked revenue growth from asset and property management, transaction-based fees, warehousing and alignment capital. Institutional investors in particular feel increasing pressure to invest in profitable real estate investments. Corestate offers customised product solutions for this purpose with a focus on city quarters, student housing, commercial and logistics as well as affordable housing in German cities and metropolitan areas. In addition, the growth prospects in the highly profitable private debt segment are excellent in the face of more restrictive lending by banks in conjunction with the leading position already held in the mezzanine business. Added to this is the further expansion of synergy effects between the financing of real estate projects and their subsequent placement in client funds.
Corestate CEO Lars Schnidrig comments: “In order to emerge stronger from the crisis, we have made sure to do our homework over the past few months. As well as adapting our products towards Core/Core+, we are further developing our market presence with a new client focus in the DACH region and are implementing a group-wide efficiency programme to significantly improve our operating profitability. With our expanded capital base, we will be able to take advantage of numerous business opportunities in the coming quarters from a position of strength. At the same time, we are reaffirming our commitment to a substantial and sustainable reduction of our net debt and the associated improvement in the risk profile of our business model. We are therefore very confident that we will again be able to perform impressively with very significant increases in earnings for the coming year and thereby generate substantial added value for our shareholders.”
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.
Forward-looking statements
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