CONSUS Real Estate AG: CONSUS successfully closes the Leipzig 416 transaction and takes important step in deleveraging programme
The Leipzig 416 project transaction has successfully completed, securing the future development of this key development quarter in Leipzig. Starting in 2016, CG Gruppe AG acquired properties which were previously used by the railway network around Delitzscher Straße in Leipzig and started the development planning of this area with the vision to create a completely new mixed-use quarter in this area of the city. CONSUS Real Estate AG (“CONSUS”), through its subsidiary CG Gruppe, will continue to be involved in the development process working closely with the Austrian real estate development company, which acquired the project.
The sales price for the project will be paid in stages, with the largest portion now paid, and the remaining amount to be paid on achieving certain milestones in 2019 and 2020. The proceeds from the first payment will reduce net debt significantly, of which the majority is high-cost mezzanine and junior debt. The terms of the transaction are confidential.
Andreas Steyer, CEO of CONSUS Real Estate AG, comments: “The successful closing of this transaction demonstrates the strength of our portfolio, and confirms our strategy of focussing on large quarters in the Top 9 cities. The opportunity to realise value and repay expensive debt enabled us to take an important step in our deleveraging programme. CONSUS remains committed to a strategy of developing properties through to completion, focussed on larger projects in the Top 9 cities.”
About CONSUS Real Estate AG
CONSUS Real Estate AG (“CONSUS”), with headquarters in Berlin, is a leading German real estate developer with a total development volume of EUR 9.6 billion as of 31 March, 2019. The focus of the company’s business activities is on residential real estate in the nine economically strongest metropolitan areas in Germany. CONSUS focuses on the development of neighbourhoods and standardised multi-storey residential buildings. By means of forward sales to institutional investors, the digitalisation of construction processes and industrial series production, the company operates along the entire value chain of real estate development. The implementation of projects, from design to execution to handover, property management and related services, is carried out by CONSUS through its CG and SSN divisions. The shares of CONSUS Real Estate AG are listed in the Scale Segment of Deutsche Börse and the m:access Segment of the Munich Stock Exchange and are traded on XETRA in Frankfurt, among others.
Anette von Zitzewitz
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