4 December 2018 – Eje Prime
Corestate is growing in Spain three years after its arrival. The Luxembourg-based fund manager is going to invest €100 million in the development of new student halls in the Spanish market between the end of this year and 2019, according to comments made by Christopher Hütwohl, the Head of the company in the country, speaking to Eje Prime.
Currently, the group has several plots in its sights, located in the main provincial capitals of Spain. “Valencia, Málaga, Pamplona, Sevilla, Madrid, Barcelona, Bilbao and Alicante are on our radar”, explained the executive, who also confirmed that between December and the first quarter of next year, the company plans to close at least three operations.
Corestate’s main objective involves becoming one of the top three players in the student hall market in Spain. “It is a segment that still has a lot of potential, which is why we do not want to limit ourselves to a specific number of projects”, says Hütwohl. In fact, the director confirmed that the company plans to develop around three developments in each city, with capacity for between 200 and 350 beds, “except for in Alicante due to the limitations of that territory”.
Similarly, the group has the intention of expanding its range of investments in Spain from 2019 onwards. “Now we are very focused on the market for student halls, but we also want to undertake more operations, especially in the office, retail and residential segments across the whole Iberian Peninsula”, explained the executive. In this way, Hütwohl made clear the company’s objective of entering the Portuguese market before 2020.
Corestate sweeps across Europe
This year, Corestate has undertaken one of the largest operations in Europe in the market for student halls of residence with the purchase of CRM Students for €17 million. It is the largest manager of student halls, which operates in the United Kingdom, with 24,000 beds spread across 145 cities. “The type of collaboration that we will carry out has yet to be determined, but thanks to that acquisition, we have exceeded the 30,000-bed threshold in the European market”, said the executive.
Headquartered in Luxembourg and with 560 employees, Corestate has 41 offices around the world, located in cities such as Frankfurt, London, Madrid, Singapore and Zurich. In Spain, the company’s team comprises three people, a number that will grow as new projects are delivered.
The company led by Michael Bütter ended 2017 with revenues of €195 million and the group expects to achieve a turnover of €230 million in 2018. The gross operating profit (EBTIDA) amounted to €123 million in 2017, whilst the net result amounted to €93.3 million.
Original story: Eje Prime (by B. Seijo)
Translation: Carmel Drake