Tuesday, 20 January 2015
CORESTATE Capital sells German residential portfolio for €83 mln (DE)
CORESTATE Capital, a specialized private equity investor based in Zug/Switzerland, and offices in Frankfurt, London, Luxembourg, and Singapore, just sold a German residential property portfolio of 2,260 housing units to a listed international institutional investor for €83 mln. The transaction brings the total revenue from units sold by CORESTATE since 2013 up to more than €1 bln.
The properties are located in the German states of North Rhine-Westphalia and Mecklenburg-Western Pomerania, and were acquired from a distressed seller in early 2010. At the time of the acquisition, the properties were characterized by a significant maintenance backlog, high vacancy levels and loss of rent. By restructuring the funding, committing massive capital expenditures toward redevelopment work, and taking an active asset management approach, CORESTATE lowered the vacancy rate from 14 % to 7 % and to cut the delinquency rate from 15 % to 5 %.
Thomas Landschreiber, Chief Investment Officer of CORESTATE Capital, comments: “We focus on creating value in real estate as opposed to passive buy-and-hold strategies. Our asset management platform covers the entire spectrum of real-estate-related deliverables, which made it possible for us to stabilize this distressed portfolio within four years and to successfully reposition it on the market. What investors appreciate about us particularly is our strong focus on the instant realization of capital growth and a brisk pace in portfolio transactions. Maintaining momentum plays an ever increasing role in today’s market.”
Source: Business network