Luxemburg, 9 May 2022 – The Management Board of Corestate Capital Holding S.A. (“Corestate”) has decided today – while continuing and maintaining the steps taken to raise additional liquidity – to prepare in parallel alternative measures to refinance the convertible bond (maturing November 2022) and the bond (maturing April 2023). For this purpose, the Company has, among other things, mandated a financial advisor to evaluate and, if necessary, prepare the options for refinancing both instruments, including potential alternative scenarios.
Furthermore, the macroeconomic risks, which have increased significantly since the outbreak of the Ukraine war and the ongoing disruptions to global supply chains, are also reaching the real estate sector. The latest dynamic developments on the interest rate and inflation side are currently leading to a decline in transaction business and restraint on the part of clients. In addition, there has been a significant increase in uncertainty on the part of the Company due to the refinancing process currently underway, with possible negative consequences for new business in the current year. In view of the significantly lower revenues, particularly from acquisition and performance-related fees in the core business, that are becoming apparent as a result of both effects, the Company no longer considers it sufficiently probable that it will achieve the financial targets originally planned for the financial year. A concrete deviation cannot be reliably quantified at present. The Management Board is therefore withdrawing the financial outlook for 2022, with revenue of between € 210 million and € 230 million and EBITDA of between € 90 million and € 110 million and a related dividend, until further notice.
About CORESTATE Capital Holding S.A. (CORESTATE)
CORESTATE is an investment manager and co-investor with around € 27 billion in assets under management (as of 31 Dec 2021). 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 850 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 and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London. Please visit www.corestate-capital.com for further information.
Forward-looking statements
This press release may contain certain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial position, development or performance of the Company and the estimates given here. These factors include those described in published reports. These reports are available on our website www.corestate-capital.com. The Company assumes no obligation whatsoever to update these forward-looking statements or to conform them to future events or developments. No inappropriate significance should be attached to forward-looking statements, which apply only to the date of this communication.
