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Takeover of Aggregate Financial Services by CORESTATE Capital Group completed

Corestate completed the takeover of Aggregate Financial Services GmbH (“AFS”). The newly acquired securities trading bank is to operate on the market as “Corestate Bank” in the future, with operative integration slated for completion in the second quarter.

  • Private debt a key driver of growth in the corporate strategy
  • New, fully integrated platform in the future under the “Corestate Bank” brand
  • BaFin licence as a securities trading bank opens up access to the secondary market and expands the range of structuring and issuing services
  • Leading market position in the mezzanine business solidified through product innovation
  • Acquisition expected to contribute over € 15m in revenues and around € 10m in EBITDA in 2021

Frankfurt, 26 May 2021 – Corestate Capital Group (“Corestate”), a leading independent real estate investment manager in Europe, completed the takeover of Aggregate Financial Services GmbH (“AFS”). The newly acquired securities trading bank is to operate on the market as “Corestate Bank” in the future, with operative integration slated for completion in the second quarter.

René Parmantier, CEO of Corestate: “The real estate private debt market is benefiting from long-term and sustained drivers such as the rising regulatory requirements for banks, urbanisation and demographic change. As a financing platform for the entire real estate life cycle with recently expanded product expertise and an already leading position in the market, the future Corestate Bank will profit disproportionately from this growth and build further on its many years of success. There are also synergy effects and cross-selling potential of at least € 10m a year on both the client and offer side from which Corestate’s real estate equity business also stands to benefit greatly through expanded and early access to real estate projects.”

Sebastian Ernst, founder of AFS and a member of the Management Board at Corestate: “Both sides, AFS and HFS, already complement each other perfectly in terms of their offerings and client structures. Nevertheless, we will continue consistently developing new, high-margin products and services for our clients as in the past.” Johannes Märklin, also a founder of AFS and a member of the Management Board at Corestate, adds: “The timing of the merger is ideal. Precipitated by the crisis, traditional banks are taking a noticeably more restrictive approach to lending – yet the shortage of housing in many major German cities can only be lastingly counteracted by solidly financed large-scale projects. We are a decisive player in this market.”

The acquisition of AFS took part as a capital increase against contribution in kind by issuance of 8.5m new Corestate shares, which will be admitted to trading on the Frankfurt Stock Exchange in the weeks ahead and upon meeting all prerequisites, as well as a cash component of € 5m. By way of a lock-up agreement of three and five years with their approximately 2.5 million shares, Sebastian Ernst and Johannes Märklin have decided to stay with Corestate in the long term, reaffirming their sustained commitment to the company and all of its stakeholders. The remaining approximately 6 million new shares are subject to a lock-up of one year. Corestate expects a positive contribution from the acquisition of more than € 15m in revenues and around € 10m in EBITDA for the current year. As expected, the costs of the acquisition totalled between € 5m and € 10m and were already taken into account in the financial outlook for 2021.

For further information, please see the press release on the CORESTATE website.

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