Luxembourg-based investment manager Corestate Capital is to expand its micro and co-living portfolio, while investing more in residential housing by boosting its private debt offering, the company has announced at its AGM.
Urban living developments are to be launched this year in Vienna, Frankfurt, Cologne and Düsseldorf, with the firm also planning new co-living projects in the cities of Berlin, Amsterdam and Rotterdam. The favourable market environment in Europe means now is the time to ‘consistently expand’, a company spokesman said.
The purchase plans follow a active buying period by the company, which recently acquirded a string of high-street retail properties in Germany.
Meanwhile, HFS – Corestate's mezzanine finance provider subsidiary - is to broaden its private debt offering in response to growing demand for residential space in German cities, where housing demand is outstripping supply and appetite for development is correspondingly high.
Corestate also announced it expects aggregated revenues of between €285-€295 mln, EBITDA of between €165 mln - €175 mln and adjusted net profit of between €130 - €140 mln. The group’s core business, real estate investment management, is forecast to grow by more than 30% in the current financial year, it said. Meanwhile, a record distribution of more than €53 mln was proposed at the AGM of €2.50 per share - a dividend yield of more than 6%.
Corestate’s AGM comes soon after Lars Schnidrig was appointed CEO, following the departure of the previous incumbent Michael Butter, late last year. The company has also extended the contract of its chief information officer, Thomas Landschreiber.
Commenting on the AGM announcements, Schnidrig said: ‘2018 was marked by numerous transformation processes in order to further develop the company into a leading partner for real estate investors, especially from the institutional sector. In 2019, we will continue to focus on our customers, who will benefit from our product offensive. On the expansion side, we are targeting not only Germany but also the rest of Europe.
‘In the mezzanine financing segment, we expect to see a sustained demand trend in the coming years. HFS’s market leadership gives us a decisive competitive advantage – especially when it comes to further diversifying our range of services.’
