CORESTATE is taking a change of perspective following a structured strategy process across the entire group: In the future, the company will see itself as a manager of this value chain – from project to sale. „We need to understand each stage and be able to manage it at the highest level. To this end, we will selectively combine forces and also strengthen ourselves where it makes sense“, explains René Parmantier, CEO of Corestate.
Frankfurt, February 24, 2021. Corestate Capital Group (Corestate), a leading independent real estate investment manager in Europe, is taking a change of perspective following a structured strategy process across the entire group: In the future, the company will see itself as a manager of this value chain – from project to sale. „We need to understand each stage and be able to manage it at the highest level. To this end, we will selectively combine forces and also strengthen ourselves where it makes sense“, explains René Parmantier, CEO of Corestate.
The company has already taken the first consistent steps along this path under Parmantier’s leadership. „We have hit an important mark in the private debt segment, which is central to our success, at exactly the right time with the acquisition of Aggregate Financial Services (AFS). With the expertise of AFS, we are significantly strengthening our important debt advisory service line along the entire life cycle of real estate. At the same time, we are securing and expanding AFS’s banking business and, with its help, will strengthen our position as market leader for mezzanine financing in German-speaking countries. Last but not least, the additional licenses will open up further sources of income for us; for example, through the securitization and trading of debt instruments“, says Parmantier.
The adjustment to the changed market situation is being tackled without delay. Just a few days ago, the sales force was bundled and strengthened. „We expect a lot from this step. We want to take advantage of the upheaval in the market. We see the potential for more and especially larger transactions“, explains Parmantier. „I am very confident. The demand we are seeing shows that the path we are taking is the right one.”
The consistent focus of the investment portfolio on sustainable, future-proof asset classes is another cornerstone of the strategy. City centers will change. But they will remain a magnet. Corestate wants to help shape and take advantage of this transformation. The CEO continues: „We will offer modern urban living for every phase of life. Among other things, we will provide answers to how retail, daycare centers, medical centers and care facilities are innovatively integrated. This will give investors the opportunity to invest in the major social trends that will have a drastic impact on the way we live and work.” These changing conditions create new opportunities for investors; not only in urban districts, residential properties and logistics, but also in office properties or experience-oriented retail spaces that are becoming more flexible. All forward-looking concepts at Corestate are flanked by ESG expertise that is unique in the industry and will in future also be made available to clients – above all institutional investors – as part of advisory services.
Parmantier, who has led the company since December, said: “I have used the time since I took office to press ahead with the further development of the strategy at full speed. In the past, we were too dependent on inorganic growth. That must and will change. We must become more active here, because times of upheaval and crisis, such as those we are currently experiencing, are precisely times when market shares are redistributed. We want to and will be among the winners here. That is why we have massively reduced complexity and will simplify the brand universe under the Corestate umbrella in the coming months. Ultimately, despite all our specialization along the value chain, we are one company. This should shape our actions even more in the future.”
Parmantier adds, “Corestate, with its extensive product portfolio and broad geographic footprint in Europe, has enormous potential, which we now intend to leverage by unleashing dormant forces in the upcoming upswing. In doing so, we will return to the company’s strongly entrepreneurial DNA. That won’t happen overnight, but we have the right team on board to do it. For my part, I joined Corestate to stay and take the company forward on a sustainable basis. 2021 will therefore be a year of new beginnings for Corestate in many respects!”
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
This press release may contain forward-looking statements. Forward-looking statements are all statements that are not historical facts and events. This applies wherever there is information about future financial profitability, plans and expectations with regard to the company, growth and profitability as well as economic conditions to which the company is exposed. Statements using the words “should”, “may”, “will”, “believes”, “expects”, “assumes”, “assumes”, “estimates”, “plans”, “believes”, “to the knowledge”, “estimates” or similar expressions indicate such forward-looking statements. Forward-looking statements are based on current estimates and assumptions made by management to the best of their knowledge. Such forward-looking statements are based on assumptions and factors and are subject to uncertainties, the non-occurrence or occurrence of which may cause the actual circumstances, including the Company’s net assets, financial position and results of operations, to differ materially from or be more negative than those expressly or implicitly assumed or described in these statements. Certain forward-looking statements, while appropriate at this time, may prove to be incorrect. Various known and unknown risks, uncertainties and other factors could cause the forward-looking statements, actual results, financial position, development or performance of the Company to be materially different from those expressed or implied by such statements. Therefore, the Company and its management cannot be held responsible for the actual occurrence of the forecasted developments. It should be noted that the Company assumes no obligation to update such forward-looking statements or to conform them to future events or developments.
