EUROPE – Opportunistic real estate fund manager Corestate Capital has announced it will extend its activities into value-add and core strategies after selling a stake to Intershop Holding.
"As part of our growth strategy we are extending our portfolio and are planning to offer value-add and core products alongside opportunistic products," the Swiss-based company stated. It said "demand for core and value-add products are increasing".
Intershop, a Swiss-listed real estate company that specialises in developments, is acquiring the stake for €20m. The transaction involves a capital increase and the purchase of existing shares and participation certificates.
Corestate said the new partner would help it "exploit lucrative growth opportunities of Germany’s real estate market".
Corestate has recently been investing in distressed real estate portfolios in Germany and earlier this year established a property management company in Germany to enable it to reposition assets itself.
The shift in strategy and new shareholder represent the latest in a series of changes at the fund management company which included the departure of chief executive Phillip Burns in April.