Corestate sells short-term rental apartments at heavy losses

Zurich The crisis-plagued project developer Corestate only manages to place properties on the market with losses running into the millions. As it became known on Friday, the company has sold an apartment complex for short-term rentals in Düsseldorf operated under the “Joyn” brand. The buyer is the Frankfurt real estate manager Imaxxam, which is acquiring the property for a Union Investment fund.

Corestate hired JLL as a broker. First, the industry service Thomas Daily reported on the conclusion of the deal. Corestate and Imaxxam declined to comment on the details of the transaction.

In May 2022, Imaxxam offered around 17 million euros for the property, according to a presentation by Corestate for external investors classified as “secret”, which is available to the Handelsblatt. Accordingly, Corestate had received bids between ten and a maximum of 17 million euros.