Corestate Group wins German distressed real estate portfolio mandate
The Corestate Group has secured a mandate for a distressed real estate portfolio with more than 85,000 square metres of rental space from DR Real Estate, DR Commercial 1 and DR Wohnen 1.
The diversified portfolio includes 54 residential and four commercial properties, which are mainly located in Northern Germany and North-Rhine Westphalia. The four commercial properties are situated in Berlin, Bonn, Dortmund and Hamburg. The residential portfolio consists of 1,174 apartment units with a current vacancy rate of 25 per cent.
"It is crucial in a case of a diversified portfolio to have proper asset management capabilities on site. This is the basis for being able to execute the necessary improvement measures in a timely and proficient manner,” says Thomas Ellrich, insolvency administrator and attorney at chambers Voigt Salus, which chose Corestate as manager.