Corestate study shows that real estate debt is a long-term growth market
DGAP-News: Corestate Capital Holding SA / Key word (s): Real Estate / Study
09.12.2021 / 07:00
The issuer is solely responsible for the content of this announcement.
Corestate study shows that real estate debt is a long-term growth market
Frankfurt, December 9th, 2021 – Corestate, a leading independent asset manager for real estate and related financing solutions, has published its latest study entitled “Private Debt and Real Estate Financing – A Winning Asset Class in Uncertain Times”.
“Private real estate debt continues to gain in importance as an asset class. This is a long-term trend that was exacerbated by COVID-19. Investor demand for both related products and advisory services is high and we see the number of new real estate finance funds launched in 2021 approaching an all-time high, “said Mark Holz, Group Head of Research at Corestate.
The study deals with the following topics:
1. The Private Real Estate Bond Market: History, Drivers, Returns, and Outlook
2. The real estate market: A brief look at the individual sectors with cyclical and structural development and always with a view to the financing landscape
3. Green real estate finance: overview, incentives and approaches of green finance.
“Our internal evaluations have shown that the investment opportunities have declined in the corona phase. The financing side, on the other hand, was completely different with a slight increase in financing options. Private debt not only benefits from attractive risk-adjusted returns, but also from high liquidity. The more restrictive behavior of traditional lenders like banks is an important factor here. For investors, this means that there is no shortage of private real estate debt, but capital can be accessed and invested, “added Holz.
The quality of the financing depends largely on the quality of the assets and the underlying markets. The study therefore summarizes the most important structural issues and trends in the individual real estate sectors. Finally, and largely through the in-house ESG team headed by Georg Schattney, the focus on “green real estate financing” is examined. The political and regulatory framework for green financing instruments is analyzed and, based on this, the advantages of green financing are presented and possible funding opportunities are discussed.
“Even with long terms, green financing serves investors as a kind of safeguard for future regulatory requirements,” comments Schattney, Group Head of ESG and Sustainability Officer at Corestate. “This can counteract a possible penalty for non-ESG-compliant investments, which is to be expected in the coming years. In addition, real estate investments in green buildings generally offer the advantage of comparatively lower operating costs. This leads to higher rental income, customer satisfaction, which in turn reduces tenant fluctuation and increases the acceptance of higher rents. “
The study in German is available for download here: corestate-capital.com
The English-language study will be available from Monday, December 13, here at corestate-capital.com.
Press contact
Jorge person
T: +49 69 3535630-136 / M: +49 162 2632369
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Investor Relations Contact
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T: +49 69 3535630-106 / M: +49 162 1036025
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About CORESTATE Capital Holding SA (CORESTATE)
CORESTATE is an investment manager and co-investor with assets under management of around 27 billion euros. The company sees itself as a manager for the entire property value chain. Thanks to its fully integrated real estate platform, it offers investors a wide range of services, in particular the opportunity to invest in major social trends such as urbanization, demographic change or sustainability – trends that will continue to have a decisive influence on the world of life and work in the long term. The consistent focus on long-term successful asset classes is a central cornerstone of the corporate strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique in the industry. With around 850 experts, CORESTATE offers customers and investors a complete range of services and advice from a single source, from project financing to property management and sales. CORESTATE is listed on the Frankfurt Stock Exchange and acts as a respected business partner for institutional and semi-institutional investors as well as wealthy private investors in 11 European countries with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London. Please visit www.corestate-capital.com for more information.
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 the company and the estimates given here. These factors include those described in published reports. These reports are available on our website www.corestate-capital.com. The company assumes no obligation to update these forward-looking statements or to adapt them to future events or developments. Forward-looking statements, which speak only as of the date of this announcement, should not be given undue importance.
09.12.2021 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
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