Building on Success

Investment Highlights

The best of German real estate

Consus develops large-scale residential and commercial property projects in one of the most attractive real estate markets in the world: Germany. Our business strategy is to focus our efforts on Germany’s top 9 cities – the premium cities. A strong track record and promising future prospects indicates that Consus is – and will continue to be – a force to be reckoned with.

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Consus Real Estate AG

Kurfürstendamm 188-189
10707 Berlin
Germany

  1. 12.3

    bn €
    GDV
  2. 65

    Projects
  3. 2.25

    m sqm
    Total area
  4. 5,465

    Ø price per sqm
  5. 1.3

    m sqm
    Living area

    Developing real estate in Germany

    The case for Germany being the place for profitable real estate investments right now and in the foreseeable future is strong, as the country is in urgent need of additional living space. German chancellor Angela Merkel stated in 20181:

    1.5 Million new apartments and homes need to be built within the next four years. This is a matter of urgency.
    Angela Merkel, Federal Chancellor

    The demand for residential property is especially high in urban areas – the top 9 German cities Berlin, Cologne, Dresden, Dusseldorf, Frankfurt, Hamburg, Leipzig, Munich and Stuttgart present the most promising investment opportunities. Based on current, reliable data (see price development graph below), the market value for real estate development in these cities between now and 2035 is projected to exceed € 520 billion.

    This estimate is based on the current purchase price per sqm. in the respective cities and the average flat size in Germany (ca. 92 sqm.), without taking into account future property price increases. Thus, the true potential is very likely to be even higher, as demand is expected to continue to outstrip supply for the coming years.

    Price development in Germany’s top 9 cities

    With Consus focusing on developing real estate in all of these high-potential cities, we are in a great position to make the most out of the appealing market conditions Germany has to offer.

    Berlin
    Dresden
    Dusseldorf
    Frankfurt
    Hamburg
    Cologne
    Leipzig
    Munich
    Stuttgart

    Building success on a strong foundation

    Consus’ key assets for successful real estate development in Germany are our strong portfolio, business model and our status as one of Germany’s leading developers. Furthermore, we have the right tools at our disposal to improve on our already strong operative and financial capacities.

    While our journey to fully harness the capabilities of Consus by streamlining our organizational structure is still ongoing, significant progress has been made. Furthermore, we have achieved major milestones, both financially and in terms of project development since our equity raise in 2018.

     

    Consus’ key assets for successful real estate development in Germany are our strong portfolio, business model and our status as one of Germany’s leading developers. Furthermore, we have the right tools at our disposal to improve on our already strong operative and financial capacities.

    While our journey to fully harness the capabilities of Consus by streamlining our organizational structure is still ongoing, significant progress has been made. Furthermore, we have achieved major milestones, both financially and in terms of project development since our equity raise in 2018.

     

    Our Projects

    With our current assets adding up to a project gross development value of over € 12 billion, Consus has already claimed the #1 spot as Germany’s largest residential real estate developer in the top 9 cities.

    57 of our 65 current German real estate development projects are located directly in one of the country’s top 9 cities for property investment, with the 11 remaining projects focusing on up-and-coming high-potential cities like Erfurt, Bayreuth or Passau.

    Our track record speaks for itself: Successful forward sales – some of which were realized even before the beginning of construction – clearly indicate that we develop our large-scale real estate projects where it matters most to investors, aspiring property owners and future tenants.

    Project spotlight from Germany’s top 9 cities

    City Project Under construction Forward sold Net floor area (sqm) GDV in million €
    Berlin Franklinhaus yes yes 11,268 75
    Cologne Cologneo I yes yes 54,321 241
    Dresden Quartier Hoym yes yes 26,651 141
    Dusseldorf UpperNord Tower VauVau yes yes 25,066 175
    Frankfurt NewFrankfurt Towers VauVau yes yes 37,745 218
    Hamburg Holsten Quartier no no 133,517 839
    Leipzig Ostforum yes yes 17,778 67
    Munich Covent Garden no no 29,273 303
    Stuttgart No. 1 yes yes 18,686 94

    Consus 2019: A year of success

    An analysis of our achievements within the past year shows that we are on track to serve as a strong and reliable consolidator on the German real estate market in the coming years. Following major acquisitions in 2018, Consus’ EBITDA has seen considerable growth in 2019. At the same time, we have made significant progress in terms of debt reduction.

      Adjusted Q 2018 Q3 2019
    Total Income € 247.7m € 590.2m
    Overall Performance € 464.0m € 671.3m
    Adjusted EBITDA € 93.4m € 285.2m
    Financial Result € 114.1m € 173.1m
    Consolidated Net Income € 8.4m € 74.1m

    Additionally, Consus has continuously made progress in other departments as well. These following milestones have partly impacted the strong financial performance of 2019 and partly have helped to set the stage for future success:

    The road ahead

    A main objective for Consus is further progress in deleveraging through reducing the average interest rate by ca. 200 basis points to 6 % and, in addition to our recent progress in this area (see our Q3 2019 financial report) to further reduce our debt-to-equity ratio.

    Consus is a growth story, and also a deleveraging investment case. Our strong growth combined with a focus on reducing our cost of debt is planned to reduce our leverage to 3x in the medium term.
    Benjamin Lee - CFO of Consus

    Digitization meets synergies

    One of Consus’ key strengths is our focus on developing large-scale real estate projects. These are in many cases not restricted to single buildings, but rather consist of whole quarters. The sheer scale of projects like the Holsten Quartiere in Hamburg or the Benrather Gärten in Dusseldorf comes with barriers to entry – and with significant benefits in terms of cost efficiency. We are currently working on improving the latter even further.

    By digitizing all stages of project development, from planning to facility management, we aspire to considerably cut the costs across the entire value chain of real estate development {link to digitization}. Making use of our digital toolset will – among other benefits – allow us to:

    • optimize architectural planning
    • precisely calculate costs
    • conserve resources
    • lower production costs by prefabricating building components through serialized production

    The digital transformation of our project planning and production processes is one of our top priorities. Once in full effect, it will play an important role in improving both sustainability and profit margins in the future.

    The third important building block for an even more successful future is further streamlining the structure of the Consus Group, leveraging synergies and ultimately fully integrating our subsidiaries into our brand.

    Consus is in the process of integrating its subsidiaries into one efficient business, which can take best practice across the group and combine it with economies of scale.
    Andreas Steyer - CEO of Consus

    Consus: Ready for the future

    We at Consus are confident that we will succeed in mastering the challenge of transforming and improving our company to solidify our status as one of the most important – and successful – real estate developers in Germany.

    Thanks to our proven track record and a positive outlook for the future – as also pointed out by various financial analysts before and after the announcement of or strategic co-operation agreement with ADO Properties, Consus is clearly on track to fulfill its potential.

    Learn more about Consus

    Find out more about property investment opportunities in Germany, our company success story and our future plans.

    Contact

    Get in touch with our Investor Relations team for further information.

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