CORESTATE Group just acquired a residential real estate portfolio in need of restructuring and consisting of 137 properties (about 2,300 apartment units) for the price of approximately 77 million. Most of the apartment units are located in North Rhine-Westphalia and were acquired by foreign investors during the peak cycle of the German real estate market.
The financing of the portfolio is handled by a German state bank. This is the third transaction Corestate Group has realised in 2010 where borrower and financing bank diagnosed substantial deviations from the originally planned business performance.
Said Ralph Winter, Founder of CORESTATE: "In a professional accord between the financing bank and the proprietor, we found the best solution to return the seriously exposed loan commitment to a course of sustainable performance. The equity capital committed by us will help to stabilise the cash flow and to professionalise the tenant management."