DGAP-News

Corestate acquires complementary debt financing platform to offer debt service across all real estate asset classes - Seite 3

AFS on a stand-alone basis expects to generate between € 25m to € 30m revenues and between € 15m to € 20m EBITDA for 2021 based on a detailed pipeline of transactions already in progress. In addition, Corestate expects synergies in revenues and costs of at least € 10m annually on a run rate basis within the next three years.

The acquisition is conducted via a capital increase against contribution-in-kind by issuance of 8.5m new shares and € 5m in cash consideration. Based on the closing price as of 14 January 2021 of € 14.73 and with respect to the € 17m net cash position based on the preliminary closing of 2020 accounts the net purchase price is € 113m. This corresponds to a substantial discount to the fundamental value of AFS being in excess of € 170m. Another 1.5m new shares are to be paid as earn-out if the pre-synergy EBITDA increases by more than 50% over the next three years. In both cases, the acquisition of AFS will be earnings accretive. Closing of the transaction is anticipated in the second quarter of 2021, following approval by the responsible supervisory authorities.

Both Sebastian Ernst and Johannes Märklin have entered into a long-term lock-up agreement for their shares in Corestate demonstrating their firm commitment towards the group and all stakeholders.

As it has in recent months, Corestate will continue to pursue its strategy of decreasing net financial debt based on a structured placement process of balance sheet assets. Accordingly, the clear ambition to reduce the financial leverage ratio (the ratio of net financial liabilities to EBITDA) to between 2x and 3x by the end of 2021 remains unchanged.

J.P. Morgan acts as exclusive financial advisor, and White & Case as legal advisor in the transaction.

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Jorge Person
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Mario Groß
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About CORESTATE Capital Holding S.A.

CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with more than € 28 bn in assets under management. As a fully integrated real estate platform, CORESTATE offers its customers combined expertise in the areas of investment and fund management as well as property management services. The company operates as a respected business partner of institutional clients and wealthy private investors internationally. CORESTATE is headquartered in Luxembourg and has 42 additional offices in Frankfurt, London, Paris, Madrid, Zurich and Amsterdam, among others. The company employs around 800 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Please visit www.corestate-capital.com for further information.