Germany’s Corestate Capital said on Wednesday that it has completed the takeover of Aggregate Financial Services (AFS), a debt financing platform and fully licensed securities trading.
Under the deal, which is to be paid for through €5 mln in cash and a capital increase by Corestate with the issue of 8.5 million new shares, Aggregate will be rebranded Corestate Bank and will operate from now on as part of the Corestate Capital Group.
René Parmantier, CEO of Corestate, commented: ‘The real estate private debt market is benefiting from long-term and sustained drivers such as the rising regulatory requirements for banks, urbanisation and demographic change. As a financing platform for the entire real estate life cycle with recently expanded product expertise and an already leading position in the market, the future Corestate Bank will profit disproportionately from this growth and build further on its many years of success.’
Corestate expects to benefit from synergy effects and cross-selling potential to the tune of at least €10 mln a year from the deal, he added.
Johannes Märklin, a founder of AFS and a member of the Management Board at Corestate, added: ‘The timing of the merger is ideal. Precipitated by the crisis, traditional banks are taking a noticeably more restrictive approach to lending - yet the shortage of housing in many major German cities can only be lastingly counteracted by solidly financed large-scale projects. We are a decisive player in this market.’
Corestate expects a positive contribution from the acquisition of more than €15 mln in revenues and around €10 mln in EBITDA for the current year.
