CORESTATE today announced that Klaus Schmitt, most recently a member of the Management Board of Patrizia AG, will be taking over as Chairman of the Management Board (CEO) for an initial period of three years with effect from 1 January 2021. He will replace the current Chairman of the Management Board Lars Schnidrig, who will be leaving Corestate at his own request and on amicable terms as of 31 December 2020 to seek a new professional challenge.
Frankfurt, 06 October 2020. The Supervisory Board of Corestate Capital Group (Corestate), a leading independent investment manager for real estate in Europe, today announced that Klaus Schmitt, most recently a member of the Management Board of Patrizia AG, will be taking over as Chairman of the Management Board (CEO) for an initial period of three years with effect from 1 January 2021. He will replace the current Chairman of the Management Board Lars Schnidrig, who will be leaving Corestate at his own request and on amicable terms as of 31 December 2020 to seek a new professional challenge.
“We are delighted to bring such a distinguished real estate manager on board in the person of Klaus Schmitt and ensure a smooth transition in the management of the company,” said Dr Georg Allendorf, Chairman of the Supervisory Board of Corestate. “In over 17 years at Patrizia, Schmitt has played a key role in turning the company into a leading pan-European asset manager with assets under management of more than EUR 44 billion. His wealth of experience will help bring Corestate forward on its journey to becoming the first port of call for fully integrated real estate solutions in Europe.”
“The Supervisory Board is sad to see Lars Schnidrig leave the company,” Dr Allendorf added. “As CFO and CEO, Lars Schnidrig contributed greatly to the institutionalisation and governance of the Corestate Group at all levels and created a solid basis for the further development of our company. He not only played a major role in establishing a European platform and in realigning the financing structure, but he also comprehensively integrated ESG into the company´s strategy and has significantly improved Corestate´s reputation at the capital market. I would like to thank him on behalf of the entire Supervisory Board.”
“Together with an amazing team, we have achieved a great deal both strategically and operatively at the Corestate Group over the past three years,” said Lars Schnidrig, reflecting on his decision. “Over the past few months, we have also managed to set the right course to benefit from the anticipated market recovery in 2021, despite the currently extremely challenging market environment. I think I can say with confidence that I will be handing the company over to my successor, Klaus Schmitt, in good shape.”
The Supervisory Board is also expanding the Management Board with the addition of two new functions. Daniel Löhken will join the Management Board as Chief Legal and HR Officer responsible for Legal, Compliance, ESG, Risk Management and Human Resources with effect from 1 November 2020. In addition, a separate chief financial officer will be appointed to the Management Board, with a suitable candidate to be recruited as part of a structured process. The new leadership will continue to pursue the existing strategy and focus on expanding the Core and Core+ risk classes, along with systematic debt reduction.
“Daniel Löhken is an outstanding addition to the Management Board,” said Dr Allendorf. “He has excelled in advancing our governance and organisational development since joining Corestate at the start of 2018 and continues to make a vital contribution to the successful transformation of our company. With this expanded and well-balanced Management Board, we will be able to open up further growth opportunities on the market. Operative business will be well positioned under the leadership of Klaus Schmitt as CEO and Nils Hübener as CIO. I am certain that we will see many positive developments from a client and a transaction perspective in the coming quarters. In parallel, Daniel Löhken as CLO and the new CFO will be expertly and efficiently managing central corporate functions.”
Klaus Schmitt, born 1965, has more than 25 years’ experience in the real estate sector in Germany and Europe. He was a member of the Management Board at Patrizia AG for over 14 years, and managing director of Patrizia Projektentwicklung GmbH before that. Before joining Patrizia, Klaus Schmitt had leading roles at Siemens Real Estate GmbH & Co. OHG and other companies.
Daniel Löhken, born 1978, is responsible for Legal, Compliance, Risk Management, Human Resources and Internal Audit as Chief Legal and HR Officer. He has over ten years of experience in the real estate industry and in real estate financing, as well as in capital market law. Before joining Corestate, Daniel Löhken was working for Vonovia and Clifford Chance.
Positive outlook for 2021
Corestate anticipates a significant resurgence in the real estate market next year. Profitable real estate investments will remain in high demand among institutional investors, and there is plenty of upside potential in private debt given banks’ increasingly restrictive lending practices. In the wake of a significant rise in sales activities, the company expects substantial growth in transactions and stable income from real estate management to go hand in hand with an increase in income from Real Estate Investment Management and solid earnings contributions from HFS. The company has confirmed its aim of reducing the leverage ratio (net financial debt to EBITDA) to under 3.0x in the coming year.
The company has also confirmed its financial outlook for the current year. Accordingly, Corestate expects aggregated revenues and gains of EUR 185 to EUR 210 million, EBITDA of EUR 55 to EUR 80 million and adjusted net profit of EUR 25 to EUR 50 million.
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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