BF.direkt AG has acquired a 51% stake in real estate leasing company CoRE Solutions. The remaining 49% stake will be retained by CoRE management team of Klaus Busch and Marcus Bender. The company based in Grafelfing near Munich currently manages real estate assets worth approximately €215m and reported new business volume of roughly €60m in 2018.
“BF.direkt AG’s mission is to cover the entire spectrum of commercial real estate financing,” said Francesco Fedele, CEO of BF.direkt AG. “There was only a key piece missing in our portfolio: financing through leasing models. The investment in CoRE allows us to close this strategic gap. In addition, our participation in CoRE also expands our presence to the Munich area. The Bavarian capital is an important market for BF.direkt AG, but we haven’t had an office there – until now, that is.”
Manuel Koppel, CFO of BF.direkt AG, sees a number of advantages to the investment: “CoRE is an established platform with an existing portfolio that delivers an outstanding platform from which to enter the real estate leasing market, which makes it an excellent investment. What’s more, Mr Busch and Mr Bender have also shown great commitment to their company and demonstrated how much expertise they have in this area.”
Klaus Busch, CEO of CoRE, added: “Real estate leasing is primarily used by companies who want to remove the burden on their balance sheets. Typical lessees are businesses in the SME sector with revenue of €200m or above. The minimum asset value is at roughly €10m. Leasing transactions offer a number of benefits for lessees: Leasing expenses are often lower than on the regular rental market, higher loan-to-value ratios (LTVs) are possible and rental contracts are significantly longer at between 15 and 20 years.”