DGAP-News: Coreo successfully closes the 'Hydra' portfolio deal

Coreo successfully closes the "Hydra" portfolio deal

Frankfurt am Main, Germany - August 27, 2018 - Coreo AG (WKN: A0B9VV, ISIN: DE000A0B9VV6, Ticker: NNS) has successfully completed the acquisition of the "Hydra" portfolio from the Commerzbank. The legal transfer of ownership is scheduled for September 1, 2018. Coreo has invested approximately 22.5 million euros in twelve attractive value-added retail, office and residential properties in top downtown locations in the states of Hesse, North Rhine-Westphalia, Rhineland-Palatinate and Schleswig-Holstein. This investment enables Coreo to accelerate 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 their retail space has the potential for tremendous value creation given the positive population growth forecasts and above-average retail KPI figures.

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 re-letting the properties.
"We intend to utilize the full potential of the portfolio in the coming years and to effectively realise the gains. In the months before closing we have seen a strong demand from potential tenants and buyers. By fall 2018 we expect to have first tangible results from lettings and sales, what even tops our previous forecast. We therefore strongly believe that this portfolio will deliver an IRR far in excess of 50 %, aside from the attractive regular rental income in the future. Once we have completely stabilized the properties we will decide whether to sell them at full occupancy, or to keep them in our portfolio in the long term", said Marin Marinov, Coreo's 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.