Coreo keeps developing its portfolio

• Property expansion in Wiesbaden
• Hydra portfolio development completed with the sale of the properties in Darmstadt, Hanau, and Bielefeld
• Private sale successfully launched in Gelsenkirchen
• Increase in value of MagForce participation by more than EUR 3.2 million compared to the first half of 2020

Frankfurt am Main - 21 December 2020 - Property portfolio of Coreo in Wiesbaden, the capital of the German state of Hesse, was expanded by around 5,000 m². The complete property area now amounts to more than 17,000 m² with the acquisition of the property directly adjacent to the area acquired in September. The company plans to create residential building rights in accordance with the designation in the land use plan. The precise scope of the building use will be specified within the framework of a B-plan procedure.

The sale of the properties in Bielefeld, Darmstadt, and Hanau with a total volume of EUR 7.5 million also marked the successful completion of the development of the Hydra portfolio acquired in the second half of 2018. The closing is expected to take place in the first quarter of 2021. The profits from the sale will be recognised in profit or loss in the 2020 consolidated financial statements. On the whole, Coreo generated profits of around EUR 5 million with the sales of the Hydra portfolio properties.

The vacancy rate of the remaining buildings in the Hydra portfolio has now been almost completely eliminated. Long-term rental contracts were signed for the commercial spaces in Gießen and Kiel. The Frankfurt property will also be completely let following the imminent marketing of the flats in Berger Straße. All residential units in Wetzlar have already been let. Advanced negotiations are being held with an interested party under public law for the commercial space, which accounts for around 50 percent of the total area.

As scheduled, the privatisation of the property portfolio in Gelsenkirchen, which was directly taken over by Coreo AG in the first half of 2020, was started. "Our optimistic expectations have been completely fulfilled with the sale of the first eight units." says Marin N. Marinov, Member of the Board of Management, with a view to the further development of the project.

The MagForce share price showed an incredibly positive development as a result of the business potential taking shape. The value of the investment held by Coreo AG has risen accordingly by more than EUR 3.2 million compared to the figure reported in the consolidated half-year financial statements.
 

About Coreo AG
Coreo AG, with headquarters in Frankfurt am Main, is a portfolio developer with a focus on German commercial and residential real estate. The real estate portfolio of existing and development properties forms the cornerstone of the company's three pillars of income: income from letting, sales and valuation. Investments are made in real estate with considerable potential for value appreciation with existing development needs, preferably in medium-sized centres and with a volume of EUR 5-20 million, as part of the value-creating growth strategy (sweet spot). The objective is to create an efficiently managed, high-yield real estate portfolio with a volume of EUR 400 - 500 million over the next few years by means of prudent development and the sale of non-strategic objects.

Contact: