Corestate develops system for handling complex climate risks in real estate investments

• Adaptation of the entire real estate purchase analysis to EU climate targets
• Joint pilot project of Corestate Capital, CAALA and Sustainaccount
• System calculates amortization and cost scenarios
• Investors receive crucial quantitative information on sustainability and compliance with ESG regulations in the case of real estate purchase

Frankfurt, March 18, 2021. The real estate investment manager Corestate, together with the Green-Fintech Sustainaccount and the PropTech CAALA, has developed a unique forecast system that calculates the impact of transitory risks such as CO₂ pricing and physical climate risks like storms, heat waves and extreme precipitation on the value of the property based on a few basic data of the property. This enables analyses of climate risks and options for action to reduce CO2 emissions as early as the purchase of buildings.

Justus Wiedemann, Group Sustainability Officer at Corestate: "Climate change and climate policy are having an increasing impact on the real estate sector and are often the decisive factor in the management of real estate portfolios that determines the success or failure of the investment. With our novel forecasting system, we can anticipate these success variables for our clients at a particularly early stage."

Prerequisite for investment planning

With the new system, Corestate is also able to provide investors with crucial quantitative information on sustainability and ESG compliance when assessing the purchase of real estate. The developed solution thus forms a fundamental prerequisite for investment planning and enables clients to implement their sustainability strategy in a simple way.

Legislature requires market participants to disclose emission and energy metrics of buildings in order to create transparency for investors. Currently, climate risks and efficient CO2 reduction measures for individual properties and portfolios are not yet sufficiently considered in the purchase review and portfolio management. Without a structured approach, growing energy and CO2 costs are causing ever greater losses in value and thus contributing more and more to investors' diminishing returns.

Justus Wiedemann continues: "The optimization of existing buildings significantly minimizes the risks for the portfolios we manage. We want to identify the major savings levers right from the start, because it is important for us to understand when today's efficiency measures are paying off and how the cost structures react to them. In short, what investment should we factor in to keep a building within the regulatory requirements? And what additional environmental risks do we have to protect it against? The answer to this serves as a basis for sustainable real estate management."

Dr. Christian Spindler, Managing Director Sustainaccount GmbH: "Risk analysis is the basis of every real estate investment. Scenario analyses on the impact of climate policy and climate change in the real estate sector make sustainability risks transparent and allow necessary hedging and measures to be identified at an early stage."

Philipp Hollberg, Managing Director of CAALA GmbH: "Asset managers and investors are enabled to make information-based and forward-looking decisions taking into account real risks. Soon, this type of analysis will form the basis of all investment decisions."

Press contact
Jorge Person
T: 136 / M:

Investor relations contact
Mario Groß
T: 106 / M:

 

About CORESTATE Capital Holding S.A.

CORESTATE Capital Holding S.A. (CORESTATE) is an investment manager and co-investor with roughly € 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 for further information.

About CAALA GmbH

CAALA is a Munich-based software and consulting company that offers software-based parametric life cycle analyses, 3D model-based renovation potential analysis and CO2 risk analysis at portfolio level. Asset managers, property owners, project developers and architects will thus be able to make informed planning and investment decisions.

About Sustainaccount GmbH

Sustainaccount is a Green Fintech based in Zurich. The company develops data-driven solutions for dynamic measurement of climate impact (Product Carbon Footprints), as well as for the granular analysis of financial climate risks. By combining proven Internet-of-Things technology with advanced data analytics, Sustainaccount creates Digital Carbon Twins of buildings, products and business processes, enabling their efficient and effective decarbonization.

Forward-Looking Statements

This press release may contain certain forward-looking statements based on the current assumptions and projections of our management. Various known and unknown risks, uncertainties and other factors may cause actual results, financial position, development or performance of our company to differ materially from the estimates given here. These factors include those we have described in published reports. These reports are available on our website corestate-capital.com. The Company assumes no obligation to update such forward-looking statements and to adapt them to future events or developments. Forward-looking statements, the effect of which is solely based on the date of this release, should not be considered unreasonable.