Allen & Overy has advised the Luxembourg real estate investor CORESTATE Capital in relation to the sale of Austria’s largest student housing asset as well as its German Student Housing Portfolio to a fund vehicle launched on the fund platform of Universal-Investment as part of the new real estate umbrella funds platform launched by CORESTATE and Bayerische Versorgungskammer. Binder Grösswang Rechtsanwälte GmbH assisted Allen & Overy with regard to Austrian legal questions.
The new special fund "BVK-Residential Europe-Immobilienfonds Corestate" has a targeted volume of at least EUR500m and primarily invests in micro apartments, especially in student housing properties in European university towns. CORESTATE is responsible for the acquisition, investment and asset management as well as the operation of the real estate properties of the fund.
The first assets integrated into the fund are five student housing assets with a total of 1,836 units from CORESTATE's current portfolio, which have an aggregated annual net rental income of approximately EUR 9.3m. The Austrian asset is located in Vienna, Austria, in direct vicinity of the Vienna University of Economics and Business campus. The newly built asset features 589 units, a lettable area of 17,718 sqm plus 57 underground parking spots. The annual net rental income is approximately EUR 4m. One year after opening, the occupancy rate lies at 98%. The four assets in Germany are located in Bayreuth, Frankfurt am Main, Mainz and Potsdam. The portfolio consists of 1,247 units and has a combined lettable area of 26,140 sqm plus 317 underground and surface parking spots. The overall occupancy rate currently lies at 98% across all assets; the aggregated annual net rental income is approximately EUR 5.3m.
CORESTATE Capital Holding S.A. is a fully integrated real estate investment manager and co-investor seated in Luxembourg that also has offices inter alia in Frankfurt, Zurich, London, Madrid and Singapore. Since foundation of CORESTATE in 2006 the transaction volume amounts to approximately EUR 5.6bn. CORESTATE accompanies its customers along the entire value creation chain of a real estate investment product and covers, in particular, deal sourcing and the development of investment products, structuring and execution of transactions, real estate investment management services and the development and execution of exit strategies.
Allen & Overy advises CORESTATE on M&A and capital market transactions on a regular basis.
The Allen & Overy team, acting as international and lead counsel for CORESTATE throughout the whole transaction, was led by partner Dr Christian Eichner, counsel Dr Michael Fink and Kyrill Chilevych and further comprised counsel Dr Murad Daghles and associate Dr Jan-Henric M. Punte (all corporate/M&A, Düsseldorf). Regulatory advice was provided by counsel Christopher Dortschy (Regulatory, Luxembourg).
The Binder Grösswang team, responsible for all Austrian law aspects of the transaction, comprised partner Dr Markus Uitz and associates Mag Michael Delitz and Mag Cordelia Klauhs (all corporate/M&A).
