Helvetic Financial Services AG (HFS), a member of Corestate Capital Group (Corestate) and a leading provider of mezzanine financing on the German-speaking residential and commercial real estate market, has added the new senior fund Stratos VI to its product portfolio. The Stratos VI real estate bond fund has been set up as a special AIF (German special fund) and is targeted at professional and semi-professional investors. It will finance high-return development and existing properties from the residential and commercial real estate segment in the DACH region (Germany, Austria and Switzerland). The recently approved fund has already received an investment grade rating from a prominent rating agency. The fund’s target return is over 5%. HFS expects the fund to have raised around € 500m by the end of 2021 and aims to increase that amount to approximately € 1bn in 2022.
Frankfurt/Pfäffikon (CH), 14 September 2021. Helvetic Financial Services AG (HFS), a member of Corestate Capital Group (Corestate) and a leading provider of mezzanine financing on the German-speaking residential and commercial real estate market, has added the new senior fund Stratos VI to its product portfolio. The Stratos VI real estate bond fund has been set up as a special AIF (German special fund) and is targeted at professional and semi-professional investors. It will finance high-return development and existing properties from the residential and commercial real estate segment in the DACH region (Germany, Austria and Switzerland). The recently approved fund has already received an investment grade rating from a prominent rating agency. The fund’s target return is over 5%. HFS expects the fund to have raised around € 500m by the end of 2021 and aims to increase that amount to approximately € 1bn in 2022.
Martin Bassermann, Chairman of HFS’s Board of Directors: “Traditional lenders like banks are not meeting the need for real estate financing, causing a gap in demand for senior secured loans that urgently needs filling. The main causes of this are the increasing regulation of bank financing as well as the duration of the lending process. This is precisely where the new Stratos VI comes in. With a credit fund that will provide the necessary investment capital within four weeks, we are the closest alternative to traditional real estate financing. And we are expanding our range of financing products to include senior tranches alongside our mezzanine subordinated loan business, which has been successfully operating for many years. Based on the investment commitments we have already received and numerous discussions with interested institutional investors, we are very confident that HFS will become a market leader in the senior segment as well.”
Sebastian Ernst, Corestate’s Chief Debt Investment Officer (CDIO): “HFS’s new senior fund is the perfect addition to the Corestate Group’s product range in the private debt segment and underscores our holistic approach to offering our real estate investors a full portfolio of solutions on both the real estate debt and real estate equity side.”
Johannes Märklin, Corestate’s Chief Debt Financing Officer (CDFO): “We believe there is substantial untapped potential for HFS in the area of senior secured real estate financing and subordinated loans and expect strong growth in assets under management in the medium term. HFS has stood for high standards of quality for 12 years now and has not recorded any loan defaults to date. This track record will clearly help us with this move.”
HFS was one of the first companies to recognise the major potential of mezzanine financing and has established itself as a market leader in this segment of the German market since launching its first fund in 2009. In addition, HFS acts as an advisor for a large number of funds with its experienced and highly qualified team of over 30 employees.
The following information is intended exclusively for professional and semi-professional investors in accordance with the KAGB. It may contain information or references to investment funds (special AIFs) that may not be acquired by private investors.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With 830 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 11 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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