Corestate Capital CEO puts money where mouth is

René Parmantier, the CEO of Corestate Capital who was drafted in to lead the company last year, has bought 750,000 shares at a 10% premium to its current price.

In a move that the company hopes will send a message of confidence to other shareholders, members of the management board now own around 9.7% of the Luxembourg-headquartered firm.

He paid €12 for each share in the real estate company, which has a market capitalisation of €370 mln, still above the latest price of €10.87 at press time on Tuesday.

Shares in Corestate Capital peaked in 2016 at over €50. Along with all other listed companies, the price fell dramatically in Q1 2020 as the Covid-19 pandemic hit and has not recovered since. It last reached €12 on June 17 this year.

In a statement, Corestate said the share purchase by its CEO was a ‘clear sign of confidence in our growth story’.

Parmantier said: ‘Corestate is a one-of-a-kind company in the German and European real estate sector. The integrated business model and the even clearer focus on investors as our most important client group, initiated by me, are bearing fruit.'

As part of expansion, Corestate completed the acquisition of a real estate finance company in May. Buying Aggregate Financial Services, which has since rebranded as Corestate Bank, makes private debt a key driver of growth.

Parmantier said: ‘The acquisition of Aggregate Financial Services (now Corestate Bank) is pivotal to our new strategy. And this now puts us into an even better position to participate in the awaited growth boost in all segments of the real estate market that is already manifesting itself today and is expected to pick up further after the pandemic.

‘I have therefore decided to invest a substantial amount of my own money in Corestate. I hope this investment will be seen as a clear sign of confidence in our growth story, of which I am absolutely convinced.’

Corestate has €28 bn of assets under management on behalf of institutional investors and clients. Its largest market is Germany. It has offices in 11 countries.

Parmantier joined Corestate on 1 December 2020 following 12 years as CEO at Oddo Seydler Bank, forrmerly Close Brothers Seydler Bank. During that time, he advised on more than 200 financing and m&a transactions in the German real estate sector, growing a large personal network in the process.


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