Sistema Capital Partners/CORESTATE JV Secures €105 Million Retail Deals in Flensburg and Lübeck to take German High Street Acquisitions to €350 Million for Sistema-Led Club
13 December 2016, London / Luxembourg – The international private equity real estate investment joint venture of Sistema Capital Partners (SCP) and CORESTATE Capital Holding S.A. (CORESTATE) has acquired two high street properties for a total of EUR 105 m. The properties are located in Flensburg and Lübeck, two affluent and economically dynamic cities on Germany’s Baltic coast. The investments will be 70% debt-financed and lift the JV’s total volume of retail real estate deals in Germany on behalf of a Sistema-led club of investors to EUR 350m.
The two properties, acquired from different vendors, are located in prime locations of the mid-sized cities. The property in Lübeck is located in the city centre close to the main train station, while the property in Flensburg is based in the pedestrianised precincts. Occupying their combined total gross lettable area (GLA) of 37,000 sqm are tenants that include Saturn, TK Maxx, Mc Fit and Holmes Place.
Marjorie Brabet-Friel, SCP’s Chief Executive Officer, said: “SCP and CORESTATE were early to spot the opportunities in High Street retail in mid-sized German cities and the latest investments are larger and more prime in character than those previously transacted by our joint venture. These properties are located in the dominant retail destinations of their local markets and offer scope for active asset management, fitting squarely with our value-add strategy of targeting highly liquid assets in economically strong locations.”
SCP was established by Russia’s listed diversified holding company Sistema JSFC in 2015 to invest Sistema’s own capital alongside other like-minded institutional and high net-worth investors from around the world through a club deal structure that allows hands-on control of the assets. CORESTATE is a fully integrated real estate investment manager based in Luxembourg and is co-investing in and co-managing the German assets acquired by the JV platform.
Sascha Wilhelm, Chief Executive Officer of CORESTATE, said: “Retail in mid-sized German cities often serves a large catchment area as a magnet for an entire region and properties in pedestrian zones in these centres are particularly attractive investments. Our in-depth local knowledge of the German market, combined with Sistema’s expertise, have proved to be a successful combination in identifying and securing this type of investment opportunities.”
About Sistema Capital Partners
Sistema Capital Partners is a dedicated private equity real estate platform owned by the Sistema Group, the largest publicly traded diversified holding company in Russia and the CIS with around $19 billion in total assets under management. For more information on Sistema Capital Partners, please see www.sistemacapitalpartners.com.
About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. is a fully integrated real estate investment manager and co-investor seated in Luxembourg that also has offices inter alia in Frankfurt, Zurich, Madrid and Singapore. Since foundation of CORESTATE in 2006 the transaction volume amounts to approximately EUR 5.7 billion. CORESTATE accompanies its customers along the entire value creation chain of a real estate investment product and covers, in particular, deal sourcing and the development of investment products, structuring and execution of transactions, real estate investment management services and the development and execution of exit strategies. Since October 2016 the group is listed on the Frankfurt Stock Exchange via the Entry Standard.
For further information, please contact:
Press Contact of Sistema Capital Partners
Phone: +31 20 419 0901 / firstname.lastname@example.org
Investor Relations Contact of CORESTATE Capital Holding S.A.
Henryk Deter / Mirko Koch
Phone: +49 611 20585540 / email@example.com
Press Contact of CORESTATE Capital Holding S.A.
Tom Zeller, Managing Partner
Feldhoff & Cie. GmbH
Phone: +49 69 264867715 / Cell phone: +49 176 10430063 / firstname.lastname@example.org
This release may contain forward-looking statements based on current assumptions and forecasts made by our management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of our company and the estimates given here. These factors include those discussed in CORESTATE’s public reports, which are available on its website at ir.corestate-capital.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.