PRESS RELEASE : Corestate acquires complementary debt financing platform to offer debt service across all real estate asset classes

DGAP-News: Corestate Capital Holding S.A. / Key word(s): Takeover/Real Estate 
Corestate acquires complementary debt financing platform to offer debt service across all real estate asset classes 
2021-01-14 / 21:25 
The issuer is solely responsible for the content of this announcement. 
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Corestate acquires complementary debt financing platform to offer debt service across all real estate asset classes 
  . Acquisition of Aggregate Financial Services ("AFS"), a debt financing platform and fully licensed securities 
    trading bank, represents significant milestone towards strengthening Corestate's private debt strategy 
  . Further development and diversification of the successful real estate mezzanine business with new products, 
    complementary services and regional expansion 
  . AFS to generate on a stand-alone basis EUR 15m to EUR 20m EBITDA in 2021 and at least an additional EUR 10m of annual run 
    rate synergies 
  . Net Purchase price of EUR 113m mainly financed by 8.5m new shares 
  . AFS founders Sebastian Ernst and Johannes Märklin appointed as Members of the Management Board 
Luxembourg, 14 January 2021 - Corestate Capital Group ("Corestate"), a leading independent investment manager for real 
estate in Europe, today announced the full acquisition of Frankfurt-based Aggregate Financial Services GmbH ("AFS"), a 
leading debt financing platform and fully licensed securities trading bank. 
The transaction will allow Corestate to significantly expand its leading position in the real estate development 
financing market as well as within the wider real estate sector. The central element of this transaction is also the 
purchase of a securities trading bank which connects to a broader product range of tailored debt financing solutions in 
the real estate sector. As a result, the complementary and highly profitable operations at AFS and Helvetic Financial 
Services ("HFS"), Corestate's private debt business, will join forces. Subsequently, Corestate will have a strong 
market position as a financing platform through the whole real estate life cycle and thus enjoy a unique cross-selling 
potential. As part of this transaction, AFS founders and shareholders Sebastian Ernst and Johannes Märklin are 
appointed as Members of the Management Board of Corestate with immediate effect for a term of three years; they will 
also become members of the board of directors of HFS. 
René Parmantier, CEO of Corestate: "The experience and expertise of AFS complements our strengths in the mezzanine 
lending business perfectly. This accretive acquisition will enable us to start a new chapter of growth for our already 
profitable private debt segment, both in terms of clients and in terms of our service offering. I am pleased to be 
joined by the experienced and highly motivated new colleagues from AFS which have an excellent track-record and an 
outstanding network of institutional investors across Germany and Europe. In the upcoming years, we as a team will not 
only substantially grow our debt financing business, but we will also realize significant cross-selling potentials." 
Friedrich Munsberg, Chairman of Corestate's Supervisory Board, comments: "For many years, Sebastian Ernst and Johannes 
Märklin are among the most distinguished German experts in the private debt sphere. We are delighted for them to join 
forces on a long-term basis with the Corestate team as Members of the Management Board. Together with the current 
Management Board members, they will further strengthen the successful HFS business and assume further responsibility 
for the integration of AFS into the wider organisation, fostering significant synergies across the group." 
Sebastian Ernst, Managing Partner at AFS: "The combination of HFS's standing and AFS's structuring expertise with 
primary and secondary market coverage, makes it possible to create a range of products and services for investors and 
real estate companies that is unparalleled." Johannes Märklin, also Managing Partner at AFS, adds: "Especially now as 
traditional banks are significantly restricting their credit exposures, combining our very complementary businesses in 
AFS and HFS opens up outstanding organic growth opportunities and the possibility to secure and enhance our substantial 
market share in the dynamic private debt sector at an early stage." 
AFS was founded by Sebastian Ernst and Johannes Märklin in 2018 and has grown rapidly ever since, having enabled more 
than EUR 3bn of financings on behalf of real estate clients. The focus lies on financing solutions for acquisitions, 
developments, constructions and standing properties. AFS generates additional income through corresponding primary 
market issuances and associated secondary market trading. This acquired platform will offer a wide range of synergetic 
effects. It completes Corestate's offering of debt financings, mainly mezzanine, and substantially expands the client 
base. AFS has a team of more than 20 highly specialised employees and a licence under Section 32 of the German Banking 
Act for the issuing, proprietary trading and placement of financial instruments. 
AFS on a stand-alone basis expects to generate between EUR 25m to EUR 30m revenues and between EUR 15m to EUR 20m EBITDA for 
2021 based on a detailed pipeline of transactions already in progress. In addition, Corestate expects synergies in 
revenues and costs of at least EUR 10m annually on a run rate basis within the next three years. 
The acquisition is conducted via a capital increase against contribution-in-kind by issuance of 8.5m new shares and EUR 
5m in cash consideration. Based on the closing price as of 14 January 2021 of EUR 14.73 and with respect to the EUR 17m net 
cash position based on the preliminary closing of 2020 accounts the net purchase price is EUR 113m. This corresponds to a 
substantial discount to the fundamental value of AFS being in excess of EUR 170m. Another 1.5m new shares are to be paid 
as earn-out if the pre-synergy EBITDA increases by more than 50% over the next three years. In both cases, the 
acquisition of AFS will be earnings accretive. Closing of the transaction is anticipated in the second quarter of 2021, 
following approval by the responsible supervisory authorities. 
Both Sebastian Ernst and Johannes Märklin have entered into a long-term lock-up agreement for their shares in Corestate 
demonstrating their firm commitment towards the group and all stakeholders. 
As it has in recent months, Corestate will continue to pursue its strategy of decreasing net financial debt based on a 
structured placement process of balance sheet assets. Accordingly, the clear ambition to reduce the financial leverage 
ratio (the ratio of net financial liabilities to EBITDA) to between 2x and 3x by the end of 2021 remains unchanged. 
J.P. Morgan acts as exclusive financial advisor, and White & Case as legal advisor in the transaction. 
Press contact 
Jorge Person 
T: [phone] / M: [phone] 
[e-mail] 
Investor relations contact 
Mario Groß 
T: [phone] / M: [phone] 
[e-mail] 
About CORESTATE Capital Holding S.A. 
CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with more than EUR 28 bn in assets 
under management. As a fully integrated real estate platform, CORESTATE offers its customers combined expertise in the 
areas of investment and fund management as well as property 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 42 additional offices in Frankfurt, London, Paris, Madrid, Zurich and Amsterdam, among others. The 
company employs around 800 people and is listed in the Prime Standard (SDAX) of the Frankfurt Stock Exchange. Please 
visit www.corestate-capital.com for further information. 
Forward-looking statements and Disclaimer 
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January 14, 2021 15:26 ET (20:26 GMT)