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CORESTATE Capital
2018
Wolfgang Harmuth, CEO HFS
6 September
Brief introduction
>20 years expertise in Real estate and Development
Formerly Bankgesellschaft Berlin, Mezzanine Platform Atrium
Experience
Wolfgang Harmuth, CEO HFS
General management
Product acquisition
New product development
Key Responsibilities
Key Personal Tasks with HFS
Largest, fastest and most professional Mezzanine provider
Further expansion of market leadership
Driving internationalisation (esp. Spain)
Keeping-up the ambitious of being the first contact for all developers
CORESTATE Capital HoldingS.A. | Page 2
Post-GFC*
Typical financing structure of a development project
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Senior Debt
Equity Buffer
Senior Debt
Funding Gap
Equity Buffer
Pre-GFC* Post-GFC*
ca 15% LTV
ca 20% LTV
ca 65% LTV
*= Great Financial Crisis
ca 15% LTV
ca 85% LTV
~0.2
Our competitors and our competition edges
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By far the market leader (fund volume in bn €)
> 1.2
HFSFollowers
First mover advantage Started with € 50m in 2009
What is our competition edge?
>10 years of experience Market Leadership: We have all data and
we see all projects Best contacts in the market Fastest decision upon potential projects Fastest execution Most reliable risk assessment by genost Even Senior Lenders trust genost We are Real Estate guys, not bankers
Why do developers pay our high rates?
Speed is key for developers Quality leader and enabler for senior lender We guarantee fastest decision We guarantee smoothest execution Fastest intercreditor agreement
< 0.5
Due Diligence
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I - Marketing II - Screening III-Negotiation IV – Investment
Pre-Check DetailedCheck
Negotiation & Contract
ChosingInvestment Sales
Initial contact & exploratory talks
Genost
Genost: three-step check:
Pre selection: investment criteria
Pre check: market, asset, business plan and cash flow
Detailed check: extensive due diligenceprocess
Final concept
Structuring
Legal documentation
LOI with seniorlender
contract
Multi-layerControlling by
Lender
Senior Lender
genost/HFS
Marketing & Sourcing
Risk Management
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Potential workout incl. asset managementand sales
Funds Advisor with explicit real estateexperience
Credit check by senior lender Pre- and detailed check of assets by HFS Asset evaluation by independent experts
Sales controlling P&L controlling: cash flows and use of
proceedsMonitoring of business plansMonitoring of asset- and property managerMarket reviews incl. market and siting
analysis
Different assets, tenants, sitings Real estate managers with long-standing
track record Concentration on low-risk assets with fast
repayment of capital and low level of debt
Reduction of default risk Three-step due diligence
Minimised process risks Diversification
Outlook
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International expansion: Why Spain?
Growth in our home market Germany, Austria Switzerland
Real Estate crisis: Only the strongest and most serious developers survived
Spanish economy grows by 3% per annum since 2015
Hardly any new residentials in the last eight years >>> large backlog in the main cities
Strict risk approach:
− Best developers
− Main cities
− Higher share of equity (compared to Germany)
Healthy market, steady growth
Our focus remain: the most profitable and solid investments
CORESTATE Capital Holding S.A.CORESTATE Capital Group4, rue Jean Monnet | L-2180 Luxembourg corestate-capital.com
Dr. Kai G. KlingerHead of Investor Relations & Capital MarketsPhone: +49 69 [email protected]
Investor Contact
