Consus Real Estate - Deleveraging as COVID-19 delays expansion
Consus Real Estate’s investment portfolio has more than doubled over the last two years, to a €12.3bn gross development value (GDV) at the end of FY19. This period included the end-2018 acquisition of SSN, contributing to the high end 2019 net debt of €2.7bn. While management states in its annual report that the coronavirus outbreak may not have a material impact on its business, it is, nonetheless, focusing efforts on deleveraging and restructuring the relatively expensive debt. Consequently, Consus has delayed all further purchases for the year and agreed to sell 17 projects with a GDV amounting to €2.3bn, for €690m, representing a double-digit premium to market values as at end-December 2019.CONSUS Real Estate AG is a Germany-based company specialized in the real estate sector. The Company specializes in the development of entire neighborhoods and standardized flats. Additionally, CONSUS Real Estate AG operates along the entire real estate development chain, which includes the acquisition, development & planning, forward sales, construction, hand-over, as well as letting of real estate developments and other services via its subsidiaries CG Gruppe AG and SSN Group AG. The Company reports its businesses into three main segments: Consus, which focusses on supporting the subsidiaries through head office functions; CG, which includes the development of real estate for residential and commercial use, as well as the renting of commercial and residential real estate services, and SSN, which encompasses the development of real estate for residential and commercial use. The Company is present in Berlin and Frankfurt, among others.
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