Corestate has received a loan facility for €343m from Stuttgart-based landesbank LBBW (Landesbank Baden-Württemberg). The facility will be used to finance the seed portfolio of the high-street fund managed on behalf of Germany’s largest pension fund BVK (Bayerische Versorgungskammer). Since mid-2017, Corestate holds the asset-management mandate for the €687m portfolio, which was launched on Universal-Investment’s platform. The portfolio includes 90 assets across Germany, which Corestate originally acquired and held in several portfolios in its club deal programme.
The debt facility has an attractive fixed interest rate and a maturity of 10 years. “We did not only manage to achieve an attractive interest rate in the current volatile credit market environment but additionally took the interest rate risk out of the equation for the BVK portfolio,” commented Lars Schnidrig, CFO of Corestate.
Overall, Corestate manages a portfolio of 200 high-street assets with a total investment volume of over €2bn in German mid-sized cities.