2017‑07‑01 Corestate Capital Holding S.A.: Acquisition of Helvetic Financial ...

CORESTATE acquires HFS Helvetic Financial Services AG
and integrates Hannover Leasing Group;
guidance for net income 2017 raised to EUR 85-90 million

- Assets under management (AuM) increase to EUR 20 billion
- Purchase price for HFS in the mid three-digit million range
- Guidance for financial year 2017 raised
- Adjustments within the Executive Board and Senior Advisory Circle

CORESTATE Capital Holding S.A. (CORESTATE), a fully integrated investment manager and co-investor based in Luxembourg, acquires HFS Helvetic Financial Services AG (HFS), based in Wollerau (Switzerland), and successfully integrates Hannover Leasing Group (HL).

HFS is a leading provider of mezzanine financing in the German residential and commercial real estate market and also sub-advises numerous funds. HFS has been one of the first companies to identify the significant potential of mezzanine financing and already launched a related fund in 2009. With the acquisition of HFS, CORESTATE expands its value proposition to include mezzanine real estate financing, grows its fund business and improves access to institutional investors such as pension funds and insurance carriers.

HL is a leading asset manager and provider of real asset investments in Germany and offers closed-ended mutual AIFs (alternative investment funds) as a registered capital administration company (Kapitalverwaltungsgesellschaft). Since its foundation in 1981, HL has been focusing mainly on domestic and international property investments as well as on alternative assets. The takeover of HL brings an attractive combination of contractually secured long-term asset management revenue and significant new business potential.

Broader product spectrum

As a result of the transaction, CORESTATE will become a leading listed asset and investment manager with a focus on real estate equity, debt and alternative assets in the German-speaking region. Upon closing of the two transactions, the assets under management (AuM) of CORESTATE will grow to EUR 20 billion. CORESTATE has over 470 employees in 29 offices across six different countries globally.

The combination of the three networks will result in a significantly strengthened asset and investment management platform with an impressive track record: together, the three companies have been raising EUR 12 billion in equity from investors in the past. CORESTATE will benefit from an extended product offering, an improved access to capital and higher recurring revenues.

"CORESTATE will continue to drive the consolidation since both the need and potential in our industry are significant. The newly increased and diversified CORESTATE offers an excellent platform for additional well-chosen acquisitions," says Ralph Winter, founder and senior advisor of CORESTATE.

Transaction financing including via capital increase against non-cash contributions

The acquisition of HL will be financed out of company funds. The purchase price for HFS in the mid three-digit million range will be financed by the issuance of 7.4 million new shares in exchange for non-cash contributions from the authorised capital to HFS shareholders as well as by debt capital and own funds.

Guidance for 2017 raised

In view of the acquisitions and a positive market outlook, CORESTATE raises its guidance for the ongoing financial year 2017. Net income before one-off items increases from EUR 36-37 million to 85-90 million. The revenue basis will become both broader and more stable. Going forward, 90% of revenues will be recurring in nature.

Adjustments within the Executive Board and Senior Advisory Circle support the integration process

CORESTATE has made important additions to its management team in order to drive the integration of the acquired entities, adjust governance to the new size of the company and continue to fully live up to its role as an active consolidator.

Thomas Landschreiber, co-founder and chief investment officer of CORESTATE will join the boardroom of HFS alongside Norbert Ketterer (chairman of the board) and Marcellino Graf zu Hoensbroech.

Lars Schnidrig (44) has been appointed chief financial officer (CFO) effective 1 July. Over the past eight years, Lars Schnidrig, has been head of finance and treasury of the DAX 30 listed company Vonovia SE. Prior to that, he worked for about eight years in international investment banking at HypoVereinsbank and other banks in the cities of London, Paris, Dublin, New York and Munich.

"With Lars Schnidrig, we were able to bring on board a multiple award winning capital market expert who will further accelerate our growth based on his integration experience in fast-growing companies and his capital market expertise," says Micha Blattmann, chairman of the CORESTATE supervisory board.

After nine years as CFO of CORESTATE, Daniel Schoch will depart from the board of CORESTATE by mutual consent; he will, however, continue to support the business as senior adviser.

"CORESTATE owes Daniel Schoch a great debt of gratitude and appreciation. During the initial stages, he created the financial prerequisites without which CORESTATE would have been unable to expand. He has been instrumental in CORESTATE's development into a leading European real estate investment firm," comments Ralph Winter.

In addition, Gregory Gould will strengthen the CORESTATE team as a senior adviser for analysis and strategic development in the capital market. Gregory Gould was a managing director at Goldman Sachs until 2006 and in charge of the Global Investment Research Team in New York. He was involved in fundraising activities and transactions totalling USD 50 billion. Gregory Gould worked closely with the company's investment banking division on transactions with companies like MasterCard and Accenture. Gregory Gould is an alumnus of the Massachusetts Institute of Technology (MIT).

IR / PR Contact
Alexander Schmidt
Edelman.ergo
Phone: +49 69 271389-26 / Cell phone: +49 177 2604152
alexander.schmidt@edelmanergo.com

About CORESTATE Capital Holding S.A.
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with EUR 20bn* in assets under management. As a fully integrated real estate platform, CORESTATE offers its clients combined expertise in the areas of investment and fund management as well as real estate 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 29 offices including in Frankfurt, London, Madrid, Singapore and Zurich. The company employs over 470 people and is listed on the Frankfurt Stock Exchange. Further information is available at www.corestate-capital.com.
*Following the completion of the Hannover Leasing Group and HFS Helvetic Financial Services AG

Forward-Looking Statements
This press 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 our public reports, which are available on our 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.

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