DGAP-Adhoc: Coreo acquires twelve attractive office, residential and commercial properties in top downtown locations

Coreo acquires twelve attractive office, residential and commercial properties in top downtown locations
 

Frankfurt am Main, Germany - 8 May 2018 - Coreo AG (WKN: A0B9VV, ISIN: DE000A0B9VV6, Ticker: NNS) has successfully completed the acquisition of the Commerzbank owned "Hydra" portfolio. Coreo has invested approximately 22.5 million euros in twelve attractive value-added office, residential and commercial properties in top downtown locations in the states of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Schleswig-Holstein. This investment sees Coreo continuing its consistent value-creating growth strategy.

Located at the outskirts of the pedestrian zones in downtown areas, the former Commerzbank branches offer a total lettable space of over 22,000 m². Many of the sites are prime locations for office and residential use and hold the potential for tremendous value creation given the positive population growth forecasts and above-average retail KPI figures. Three properties in the Rhine-Main region (Frankfurt, Hanau and Darmstadt) make up the most valuable part of the portfolio as they benefit from the extraordinary economic growth in the area. Other locations include the university towns of Marburg, Giessen and Kiel, whose development is influenced by a high demand in the education sector, as well as Trier, where there is a very striking property in close proximity to the famous "Porta Nigra", which is listed as the UNESCO World Heritage Site.

The former bank foyers will be converted into retail or gastronomy areas. Due to the high demand for residential space, the offices in some locations shall be converted into flats. This will considerably increase the share of residential space of the portfolio up to around one third of the total lettable area. An investment of approx. 5.5 million euros is planned for renovating, conversion and reletting the properties.

"We intend to reveal the full potential of the portfolio over the coming years and to effectively realise the gains. Aside from the attractive regular rental income in the future, we expect an IRR far in excess of 50 %. At the end of the process we will decide whether we want to sell the properties at full occupancy or to keep them in our portfolio in the long term", said Marin Marinov, the CEO. "This acquisition is the most important milestone in our growth strategy to date and should significantly increase our net asset value."

About Coreo AG
Frankfurt am Main based Coreo AG, is a real estate company focussing on commercial and residential properties in Germany. It aims to develop and manage a very profitable real estate portfolio. Active asset management of the properties and their redevelopment shall create high rental income and attractive sales proceeds.