Corealcredit went to Aareal for €150m below value

German real estate lender Aareal Bank’s recent purchase of peer Corealcredit came with €150 mln of ‘negative goodwill’.

Aareal completed the purchase of Corealcredit at the end of March for €342 mln. It’s Q1 reporting shows ‘negative goodwill’ of €150 mln, suggesting it was sold for that amount below the net value of its assets.

The figure helped to boost Aaeral’s Q1 profits to €215 mln. Excluding the €150 mln, profits were €65 mln, up around 40% on the €47 mln of Q1 2013.