DGAP-News

Corestate subsidiary HFS sells top residential portfolio to KGAL - largest real estate transaction in Leipzig in 2021

DGAP-News: Corestate Capital Holding S.A. / Key word(s): Real Estate Corestate subsidiary HFS sells top residential portfolio to KGAL - largest real estate transaction in Leipzig in 2021 25.01.2022 / 07:19 The issuer is solely responsible for the content of this announcement. Corestate subsidiary HFS sells top residential portfolio to KGAL - largest real estate transaction in Leipzig in 2021

• Premium new buildings with 22,900 m² in gross lettable area sold for a nine-digit figure
• HFS generates double-digit IRR for German superannuation scheme
• Financing, project development, asset management and market positioning from a single source

Frankfurt/Pfäffikon (CH), 25 January 2022 - The Corestate subsidiary HFS has sold a premium new residential construction portfolio with commercial space and a gross lettable area of 22,900 m² in Leipzig, Germany, to KGAL Investment Management GmbH's KGAL Wohnen Core 3 institutional fund for a nine-digit figure. On account of its volume, the deal was the largest residential development transaction in Leipzig in 2021. HFS provided early-stage project development financing. In 2016, the project was acquired on behalf of a German superannuation scheme through a special AIF initiated by HFS. From the start of construction, HFS successfully managed and optimised the portfolio for the institutional client while overseeing the final development of the project. The company later positioned the project in the market and rented out all of the residential units in a short space of time.

Thanks to its fully integrated line of services with sustainable expertise in financing, project development, asset management and market positioning, HFS has succeeded in making full use of the investment potential and generating a double-digit IRR for our institutional client. The project in Leipzig reflects the Corestate Group's mission of providing real estate investors on both the debt and equity sides with a full range of solutions that embodies high quality standards.