Corestate Capital Holding S.A.
CORESTATE Capital Holding S.A.: Real estate investment manager Corestate preparing IPO
DGAP-News: CORESTATE Capital Holding S.A. / Key word(s): IPO Real estate investment manager Corestate preparing IPO – Listing on Frankfurt Stock Exchange planned – Offer comprised of a capital increase and shares held by existing shareholders – A fully integrated real estate investment manager with a transaction track record of over EUR 5bn; co-investments in collaboration with clients are an essential element of the business model – Issue proceeds of approximately EUR 100m to be used for company’s continued growth on the basis of additional co-investments with its clients into real estate investment products – Prospective dividend ratio of 60% to 70% of funds from operations (FFO) Corestate Capital Holding S.A. (“Corestate” or the “Company”), a fully integrated real estate investment manager, is preparing an initial public offering (IPO) on the regulated market segment (Prime Standard) of the Frankfurt Stock Exchange. In the context of the IPO the Company intends to issue new shares from a capital increase with targeted gross issue proceeds of around EUR 100m as well as to offer shares held by existing shareholders to allow for a free float of over 50% after the IPO. Currently around 70.9% of the share capital is held by the two founders Ralph Winter (64.2%) and Thomas Landschreiber (6.7%). Intershop Holding AG, a company listed in Switzerland, is also represented as a core shareholder with 28.1%. In addition, the offer will include a customary greenshoe of up to 15% of the volume of the offering comprising of existing shares from the holdings of the existing shareholders. The shares shall be offered in a public placement in Germany and in a private placement to institutional investors in certain jurisdictions outside of Germany and outside of the United States of America. Corestate guides its clients through the entire value creation process of a real estate investment, covering in particular the deal sourcing and the development of investment products, structuring and execution of transactions, real estate investment management services and the development and implementation of exit strategies. Corestate places a particular focus on actively enhancing the value of real estate investments. On behalf of its clients – especially investors with a family office or ultra-high-net-worth background – Corestate invests predominantly into residential, student and commercial (especially retail) real estate assets in Germany and other selected European markets, currently Austria and Spain. Corestate’s main income streams consist of management and advisory fees as well as revenues from co-investments and from real estate assets held temporarily on Corestate’s balance sheet. Corestate intends to use the expected proceeds from the capital increase to increase the number of transactions and to selectively execute higher volume transactions, allowing the company to also offer long-term investment products for institutional clients. The intention is to accelerate the sustainable growth of Corestate’s assets under management. Currently, Corestate manages assets of EUR 1.4bn (including planned project developments) (as of June 2015). With its improved equity position, Corestate will also be able to expand its “warehousing”, i.e. real estate assets temporarily held by Corestate on its own balance sheet, enabling the company to take advantage of favourable market opportunities more quickly. Warehousing also allows to build up seed assets for institutional clients. An existing shareholder loan related to these seed assets shall also be repaid. In addition, Corestate intends to further pursue a targeted expansion in selected markets. Comment from Sascha Wilhelm, Chief Executive Officer of Corestate Capital Holding S.A.: “Since the founding of the company in 2006, Corestate has developed into a leading real estate investment manager. Thanks to our efficient platform, a strong network for deal sourcing and equity raising, and our experienced management team, we have already executed real estate transactions with a total volume of approximately EUR 5bn. Going public will allow us to build upon what we have achieved so far. It is the next logical step for us in driving our continued growth.” Flexible real estate platform with large transaction volume With its efficient platform, Corestate was able to complete 19 transactions with a volume of approximately EUR 1bn in 2014. Corestate’s extensive deal-sourcing network, including over 1,500 local agents along with other market players such as real estate companies, banks and insolvency administrators, gives the company premium access to the real estate market. Furthermore, with its equity raising team in Zug, Frankfurt, London and Singapore, an extensive network of more than 500 client contacts and a strong local partner network, Corestate benefits from excellent access to clients. This has allowed Corestate to raise EUR 1bn in equity capital for its investment products since it was founded. Corestate is led by an experienced management team with a strong track record and broad experience in the real estate sector. The team has been working together successfully for many years on acquiring, structuring, managing and selling real estate portfolios. The Corestate team has an international private equity and capital markets focus, combined with deep knowledge of local real estate markets and the ability to open up new local markets. Strong financials and stable development Corestate’s performance is marked by strong revenue and earnings growth. From 2012 to 2014 group revenues rose by 42.3% per year; annual group net profit increased by a factor of 2.3 over the same period. The business model is characterised by low capital intensity together with an attractive earnings profile. In 2014, with revenues of EUR 36.2m, Corestate generated funds from operations (FFO) of EUR 14.6m. This represents a margin of 40.4%. Significant growth potential Corestate has a well-filled deal pipeline, which includes various asset classes. The Company’s fully integrated platform allows it to meet the increasing demand for real estate investments and comprehensive investment management solutions. Corestate invests in attractive markets with a diversified risk profile. Known as a “safe haven”, Germany offers the most robust macro environment and Europe’s most stable real estate market. The Austrian market is characterised by its strong economic foundation and a growing demand for real estate. As one of the fastest-growing European markets after the crisis, Spain offers very attractive new opportunities. Sustainable dividend policy planned Corestate plans to have its shareholders participate in its commercial success. The company’s dividend policy foresees dividend payments which – while maintaining an appropriate level of liquidity – reflect the company’s growth and development plans. In general, Corestate is planning a dividend ratio of 60% to 70% of its funds from operations (FFO). Berenberg will act as the Sole Global Coordinator and Bookrunner. Bankhaus Lampe has been mandated as Co-Bookrunner. Media and Investor Relations Contact About Corestate Capital Holding S.A. This publication constitutes neither an offer of securities for sale nor a solicitation of an offer to purchase securities in the United States, Germany or any other jurisdiction. The shares of Corestate Capital Holding S.A. (the “Shares” or the “Company” respectively) may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Company does not intend to register fully or partially the offering in the United States or to conduct a public offering of Shares in the Company in the United States. This publication is an advertisement. This publication constitutes neither an offer to sell nor a solicitation to buy securities. The offer will be made solely by means of, and on the basis of a securities prospectus to be published. An investment decision regarding the publicly offered securities of Corestate Capital Holding S.A. should only be made on the basis of the securities prospectus. After the approval of the responsible authority the securities prospectus will be available free of charge from Corestate Capital Holding S.A., 35, avenue Monterey, L-2163 Luxembourg, as well as on the Corestate Capital Holding S.A. website under www.corestate-capital.com and on the website of the Luxembourg Stock Exchange (www.bourse.lu). This document constitutes neither an offer of securities for sale nor a solicitation of an offer to purchase securities to the public in the United Kingdom, to which Section 85 of the U.K. Financial Services and Markets Act 2000 (in its current version) applies, and should not be considered as a recommendation that any person should subscribe for or purchase of securities as part of the offer. This document is directed at and/or for distribution in the United Kingdom only to (i) persons who have professional experience in matters relating to investments falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (ii) high net worth entities falling within article 49(2)(a) to (d) of the Order (all such persons are referred to herein as “relevant persons”). Any person who is not a relevant person should not act or rely on this release or any of its contents. Each investment or investment activity, to which this statement refers to is only available to relevant persons and is only carried out with relevant persons. This document (or parts of it) may not be released, published, distributed or made accessible to third parties in any other way. This press release contains forward-looking statements. These statements reflect current views, expectations and assumptions of the management of Corestate Capital Holding S.A. and are based on information currently available to the management. Forward-looking statements are no guarantees for future results and developments and involve known and unknown risks and uncertainties. The actual future results of Corestate Capital Holding S.A. and developments concerning Corestate Capital Holding S.A. may differ materially from the expectations and assumptions stated here due to various factors. These factors include especially changes in the overall economic and competitive situation. Furthermore, the developments on financial markets and exchange rate fluctuations as well as national and international legislative changes, particularly with regard to tax regulations, as well as other factors may impact future results and developments of the company. The company assumes no responsibility to update the statements conveyed within this notice.
2015-10-12 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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