German real estate lender Aareal Bank’s recent purchase of peer Corealcredit came with €150 mln of ‘negative goodwill’, it emerges from the bank's Q1 results.
German real estate lender Aareal Bank’s recent purchase of peer Corealcredit came with €150 mln of ‘negative goodwill’, it emerges from the bank's Q1 results.
Aareal closed the deal for Corealcredit at the end of March for €342 mln. Its Q1 earnings report shows ‘negative goodwill’ of €150 mln, suggesting it was sold for less than the net value of its assets.
The figure helped to boost Aareal’s Q1 profits to €215 mln. Excluding the €150 mln, profits were €65 mln, up around 40% on the €47 mln posted in Q1 2013.