CR Investment Management (CR) will place the focus on its core business involving advisory on, and work-out of, non-performing real estate projects in 2023. In this line of work, CR makes its expertise of decades in the business available to clients in financial distress, negotiates with financiers and other project partners, takes care of the optimisation and alternative usage of properties, and assists with possible disposals.
Torsten Hollstein, Managing Director of CR Investment Management, commented: “Over the past ten years, the company managed 30 billion euros worth of non-performing properties and real estate loans. We are now shifting our focus back to this lines of business. After all, the number of non-performing debt instruments is growing in the current market cycle.”
“We are currently in talks with a number of administrators, stakeholders and lenders who have requested our expertise, for instance for the purpose of restructuring via self-administration,” added Claudius Meyer, Managing Director at CR Investment Management. “There is a strong need for consultancy, and it will keep intensifying as the year progresses. At present, we are already in the process of negotiating mandates involving undertakings with a projected volume of c. one billion euros.”
The neworld investment platform, which was set up by CR in late 2018 and which invests in sustainable real estate operator/management concepts and corresponding assets especially in segments like childcare, serviced apartments, co-living and coworking (such as Stayery, The Base, livley or Kinderhut), successfully closed a fund-raising round in 2022, receiving growth capital in the double-digit millions from established family offices. CR retains a stake as strategic partner. neworld makes growth capital and real estate competence available to companies that develop forward-looking real estate concepts. Another CR spin-off is Deutsche Habitat, a brand for sustainable large-scale residential development projects. Deutsche Habitat develops ESG-compliant housing and habitat developments in the vicinity of growth regions that are in each case customised to the respective regional requirements.
“neworld and Deutsche Habitat are now acting with operational autonomy, and have become independent companies with their own management teams and investors who are both strong and professional. This permits us in turn to focus on the core business of CR as problem solver for non-performing real estate exposures. That said, CR remains involved as active shareholder with a particular emphasis on synergy effects among the three businesses,” added Torsten Hollstein as he summarised the corporate orientation of the CR Group.
