Pan-European real estate investment manager Corestate has appointed Klaus Schmitt as its new chairman of the management board and CEO, replacing Lars Schnidrig, who has spent just 18 months in the role.
Schmitt, most recently a member of the management board of Patrizia, will take over for an initial period of three years with effect from 1 January 2021.
Schnidrig is leaving Corestate at his own request 'and on amicable terms', according to the firm, as of 31 December, to seek a new professional challenge.
'We are delighted to bring such a distinguished real estate manager on board in the person of Klaus Schmitt and ensure a smooth transition in the management of the company,' said Dr Georg Allendorf, chairman of the supervisory board of Corestate.
'In over 17 years at Patrizia, Schmitt has played a key role in turning the company into a leading pan-European asset manager with assets under management of more than €44 bn.
'His wealth of experience will help bring Corestate forward on its journey to becoming the first port of call for fully integrated real estate solutions in Europe.'
Klaus Schmitt, born 1965, has more than 25 years' experience in the real estate sector in Germany and Europe. He was a member of the management board at Patrizia for over 14 years, and managing director of Patrizia Projektentwicklung before that. Before joining Patrizia, Schmitt held leading roles at Siemens Real Estat eand other companies.
'The supervisory board is sad to see Lars Schnidrig leave the company,' Allendorf added. 'As chief financial officer and CEO, Lars Schnidrig contributed greatly to the institutionalisation and governance of the Corestate Group at all levels and created a solid basis for the further development of our company.
'He not only played a major role in establishing a European platform and in realigning the financing structure, but he also comprehensively integrated ESG into the company's strategy and has significantly improved Corestate's reputation at the capital market. I would like to thank him on behalf of the entire supervisory board.'
'Together with an amazing team, we have achieved a great deal both strategically and operatively at the Corestate Group over the past three years,' said Schnidrig. 'Over the past few months, we have also managed to set the right course to benefit from the anticipated market recovery in 2021, despite the currently extremely challenging market environment. I think I can say with confidence that I will be handing the company over to my successor, Klaus Schmitt, in good shape.'
Two new roles
The supervisory board is also expanding the management board with the addition of two new functions. Daniel Löhken will join the management board as chief legal and HR officer responsible for legal, compliance, ESG, risk management and human resources with effect from 1 November 2020.
In addition, a separate chief financial officer will be appointed to the management board, with a suitable candidate to be recruited as part of a structured process. The new leadership will continue to pursue the existing strategy and focus on expanding the Core and Core+ risk classes, along with systematic debt reduction.
'Daniel Löhken is an outstanding addition to the Management Board,' said Dr Allendorf. 'He has excelled in advancing our governance and organisational development since joining Corestate at the start of 2018 and continues to make a vital contribution to the successful transformation of our company.'
Corestate said it anticipated a significant resurgence in the real estate market next year. 'Profitable real estate investments will remain in high demand among institutional investors, and there is plenty of upside potential in private debt given banks' increasingly restrictive lending practices,' the company said in a statement, adding that it expected 'substantial growth in transactions and stable income from real estate management to go hand in hand with an increase in income from real estate investment management'.
