Corpus Sireo, the largest German real estate asset manager, has been put up for sale by its three savings bank owners in a sale process which is expected to fetch over €300m, as the country’s asset management market continues to consolidate, CoStar News can reveal.
Sparkasse KölnBonn, which owns 50%, and Stadtsparkasse Düsseldorf and Frankfurter Sparkasse, which each own 25%, have appointed Lazards in Germany to sell Corpus Sireo, which manages €15.6bn in assets under management, in a sale process dubbed Project Venus.
Corpus Sireo’s German real estate related services platform provides asset management, investment management, residential project development and investment brokerage services in Germany.
In addition, Corpus Sireo owns a 3,600-strong residential real estate which is part of separate disposal process, Project Merkur.
Corpus Sireo’s services business EBITDA in 2013 was €24.6m.
Three pools of buyers are expected to be interested in acquiring Corpus Siero: international strategic buyers, international financial buyers and domestic competitors who may seek value and economies of scale through a merger.
Wisag, Johnson Controls, CR Investment Management, CBRE and JLL are all thought to be considering bids, CoStar News understands.
Corpus Sireo also provides outsourcing real estate management services for corporate, institutional and financial investors of commercial and residential real estate who seek services from professional asset managers to efficiently manage their portfolios.
In addition, the company has ambitions to develop a German retail real estate asset management business unit in the coming years which is hoped to be realised under new ownership through leveraging its existing market reputation aided by senior hires.
Corpus Sireo assets under management (AuM) are comprised of €13.7bn, or 88%, in the asset management unit, of which €10.4bn, or 76%, are commercial real estate properties.
In addition, €1.6bn, or 10%, is managed through fund structures, a market which continues to fragment and one likely to experience further consolidation in future. Finally, Corpus Siero has around €0.4bn, or 2%, in prime residential project developments in cities including Cologne, Düsseldorf, Munich and Frankfurt.
In May 2012, Corpus Sireo was appointed as asset manager on the “Hawk” portfolio by Cerberus Capital Management after the global private equity firm won the purchase of bankrupt Speymill Deutsche Immobilien Company’s 22,000-strong German multi-family portfolio.
In October of the same year, Corpus Sireo won a five-year mandate covering asset management, sales and acquisitions for the residential portfolio of the RREEF Property Pension Fund, which has target volume of €500m.
Corpus Sireo, which has its headquarters in Cologne, employs 525 people 11 German offices and one office in Luxembourg.
Corpus Sireo and Lazards declined to comment.