Ladies and gentlemen, thank you for joining us today on our earnings call for the presentation of our financial results for the first quarter of 2022. On the Corestate Investor Relations website, you will find the press release, the interim statement for the reporting period, and the corresponding slide deck. As usual, I'd like to draw your attention to the forward-looking statement and disclaimer wording on page two of our presentation. This safe harbor language applies to the presentation and all comments we'll be making today. I would also like to mention that everything is being recorded. You can replay the call and view the transcript on our Investor Relations website a few hours after the call. With me on the call are the CEO of Corestate Capital Group, Stavros Efremidis, and our CFO, Udo Giegerich. We will guide you through the presentation, followed by the usual Q&A session.
The timeframe for today's call is about 30 minutes. Now it's my pleasure to hand over to Stavros. Stavros, the floor is yours.
Thank you, Kai. Good morning, ladies and gentlemen, and very warm welcome from my side. Before we start with our presentation on the Q1 results, please allow me to do a quick side remark regarding the audit procedure and the postponement of our audited consolidated financial statements 2021. On the twentieth of April, Ernst & Young have fully completed their very deep audit procedures. Of course, it was later than planned, but it was especially due a very close look on certain sub-areas within the group, like the Corestate Bank, the HFS, and on some balance sheet items with critical maturities. By doing so, the management and the auditors have agreed an impairment on the HFS goodwill and furthermore, a value adjustment, for instance, of some cash-relevant current receivables.
We have done this for reasons of prudent risk provisioning in order to have a durable fundament and to set the right course, courses for successful future. As a result, Corestate received an unqualified opinion from the auditor. That is the only thing that counts for all stakeholders to be ready for everything that lies ahead. I will come back to that later. As you can see on slide three, there's a lot going on not only at Corestate but also all over the world, both economically and politically speaking. Our economy and the entire investment market are facing a dynamically rising inflation interest rate spiral. The well-known drivers, COVID and the war in Ukraine, are creating a huge jet effect that is almost impossible to control reactively by politicians and central banks.
The challenges for the overall economy and the real estate sector have not diminished in the first three months of 2022. On the other hand, valuations of assets that were hit hard by the pandemic, such as retail, micro living, and hotels, have also stabilized in recent weeks. That means this was not an easy start to the year for Corestate or the entire real estate sector. Nevertheless, we continue to pursue our strategic agenda by focusing on our core business and making the company fit for a comprehensive restart. Internally, we are already well on track with our organizational restructuring measures, repositioning and ongoing refinancing program. There is still more homework waiting for us. One of the most important challenges for us is, of course, debt reduction and the refinancing of our bonds.
We will be working hard on this in the coming week and months. A key objective in the context of the transformation of the group was also focusing the business model on core real estate activities to sharpen our profile in the market. One of the strategic decisions taken last year was to deinvest a large part of the personnel intensive and low margin property management business and to spin off the non-core asset management activities. I will come back to this in a moment on the following page. The changes on the central bank side means nothing less than a comprehensive and deep adjustment process for the real estate industry. As always, in such disruptive situations, there are three main factors that count here, opportunity, flexibility, and speed in order to be at the forefront of such a movement.
It's therefore not surprising that the first effect of this development and investment reluctance are also reflected in our figures, quarter one figures. In our special situation, this negative development is intensified by the open refinancing and the resulting increased certainty on the part of the company. Here we are seeing already a certain degree of reluctance with our clients towards new business. Please flip to page four. You see an overview on our assets under management on this chart. End of the first quarter, 2022, the real estate assets under management within Corestate core equity and debt segment went down a bit to EUR 18.4 billion from EUR 19 billion at the end of 2021.
Here, divided into the debt area, where the assets with EUR 6.5 billion remain stable and in the equity field, assets under management come to EUR 11.9 billion from EUR 12.4 billion three months ago, due to the regular outflow of a couple of smaller commercial portfolios. As indicated, we will gradually divest our non-core activities with a current assets under management volume of EUR 5.5 billion coming from EUR 8.5 billion last year. At the beginning of 2022, we have already successfully completed the disposal of majority of non-real estate portfolio with the aircraft and media funds. In addition, the spin-off process for our property manager, CAPERA, will lead to a reduction of asset management in the amount of EUR 2.5 billion in the course of the year.
For this reason, they have been reported at discontinued operations in our annual report 2021, as well as in our interim statement for quarter one. Let's move on the next slide, five, and I will explain where we stand with CAPERA. As you know, at the beginning of this year, the spin-off process was initiated. We have made fast progress here. At the end of April, we signed the SPA with a strategic buyer. The transaction is expected to close in the next few weeks, in the second quarter. What does this mean in figures for Corestate? CAPERA generated roughly EUR 18 million in revenues last year. With the divestment, the number of employees in the group will decrease by about 270 FTEs, which is roughly 1/3.
About EUR 2.5 billion of our non-core assets under management will be sifted by the buyer. The anticipated cash proceeds from the transaction are around EUR 14.5 million and will support our debt reduction. The portfolio measure is important strategic step to sharpen our real estate profile and to focus on the future-proof profitable business set up with higher synergies and less complexity. Let's now turn to slide six, where we start a quick tour through the specifics of our both core segments. While being confronted with the economic effects of the coronavirus pandemic, the Ukraine war, surging inflation and increasing interest rates. The conditions for the real estate industry worsened somewhat already in the first three months of 2022. Therefore, the risk aversion of institutional clients went up significantly.
We have pulled on behalf of our clients several transactions and investments like the acquisition of the new residential quarter in Kiel's prime location, Am Alten Bootshafen for Residential Germany Fund II or the prestigious Fünf-Häuser-Quartier project known as Neue Mitte in the center of the Dreieich district of Sprendlingen for its open-end special AIF Stadtquartiere I for around EUR 43 million. Our selective highlights in the operating business were, for example, the acquisition of the trendsetting office building in first zero carbon district of Paris, of the well-managed turnaround of an office building at Frankfurt Airport through reposition and successful leasing. You can see on the slide different split ups of our EUR 11.9 billion real estate equity business. Beyond our specialties, micro living, logistic or city quarters, the latter is subsumed under other.
Almost the half of the asset management are office properties, mainly in Germany, France, and Benelux. As a side note, above 80% are core and core plus investments. Please follow me to page seven of the presentation. This page is about our real estate lending and financing business, where we are in charge for a gross asset value of EUR 6.5 billion with our around EUR 1.2 billion mezzanine fund. At the end of the reporting period, we have financed just through three evergreen fund vehicles, 42 projects with an average financing size of around EUR 30 million. Since years, the vast majority of it is invested in the metropolitan area in Germany, Austria, and Switzerland. Above 70% of the lending goes to the top seven cities in Germany.
Even more important for the performance of the funds, roughly 7% are residential and core projects, which went through the crisis without any negative impact according to the ongoing high demand. Currently, we have provided funds to 24 different developer groups on a single asset base, the largest counterparty of which taken less than 80% in total. On the investor side, we have seen stable development of the fund over the last 10 years since its inception, with no significant impairments of projects and the usual coupon associated with such a high risk product. The latter has increased somewhat due to the pandemic and recent uncertainties in the company. Of course, in the light of the inflationary challenges, in the development sector, we have also intensified our monitoring activities and close interaction with project managers to prepare for all eventualities.
Given the excellent double digit performance of our funds, our market leading position, and our proven expertise in actively managing our risk, we feel well positioned to compensate and show further growth in the challenging asset class. On the side of our debt advisory business at Corestate Bank, the clear need in these uncertain times for bank-independent financing solutions is also evident. Here we can deliver a unique value chain. Our business models puts the company in a position to leverage a large number of value and chasing synergies potentials in its product offering, especially in difficult times when increasing risk elements put pressure on returns in the regular standalone portfolio business. With that, I would like to hand over to our CFO, Udo Giegerich. Please flip to page eight. Udo, the floor is yours.
Thank you, Stavros Efremidis, and a very warm welcome to all of you also from my side. I'd like to give you information on our income lines very briefly. After the improved business development in the last financial year, 2021, during the first three months, we have seen a subdued start into the new year. Including the revenue from real estate equity, from real estate debt, and from other segments, the group's aggregate revenue and gains were almost stable with EUR 37.6 million compared with the prior year's figures of EUR 37.3 million. The aggregated revenue and gains from continued operations reduced slightly to EUR 29.7 million from EUR 30.2 million in the first quarter last year.
The property management business for third parties, which is to be sold and therefore flagged as discontinued operations, contributed EUR 7.9 million to aggregated revenues and gains in the reporting period. Let us take a deeper look into the individual top line growth of the reporting segments. The real estate equity segment generated revenues of EUR 12.4 million, slightly above the prior year's level with EUR 11.7 million. Our equity transaction fees, including acquisition fees and realized sales and promote fees, came to EUR 1.3 million from EUR 2.1 million last year. Which was mainly driven by a lower transaction volume in the first three months, 2022.
The larger income part of this segment, the asset and property management fees, including the development fees in this segment, went up from EUR 9.6 million - EUR 11.2 million, mainly due to a solid underlying business and a stable development for micro-living and serviced apartments projects. The total revenue from real estate debt went down by 17% from EUR 21.3 million - EUR 17.7 million, underlining the weakest private debt market in the first quarter 2022. Revenue from underwriting and structuring fees fell from EUR 3.7 million - EUR 0.2 million, which clearly shows the suspension and/or postponement of deals and financing projects as a result of the increasing uncertainty.
Revenue from asset management and performance fees, including coupon participation fee, increased a bit from EUR 12.1 million - EUR 14.3 million. Income from bridge loans dropped considerably to EUR 2.1 million from EUR 5.5 million. Income from the other segments developed positively compared with the same reporting period in 2021, essentially supported by higher dividends from alignment capital. Please move on to slide nine. With this chart, we would like to give you a little more background on our P&L figures and key ratios. All in all, we had operational expenditures in the amount of EUR 24 million, up from EUR 21 million last year. The OpEx ratio increased to 63% from 55%.
While the expenditure in the equity segment and the others have been almost flattish, the cost increase in our debt segment was mainly driven by the first-time consolidation of the Corestate Bank. In the previous years' figures, it was not yet included. The G&A expenses reduced to EUR 9 million from EUR 12 million. As in 2021, this position contains already one-off expenses from the M&A related activities. The main focus for the upcoming quarters will be on improving the overall cost structure by taking out complexity, avoidance of double functions within the organization, and using modern technologies and digitalization while increasing revenues. Our EBITDA from continued operations stood at EUR 0.7 million compared with EUR -0.2 million last year. The EBITDA margin came to 2.5% from -0.8%.
Depreciations and amortizations, EUR 3.6 million, include also consolidation effects from the acquired Corestate Bank. Our net profit from continued operations for the first three months of 2022 stood at -EUR 9.3 million, corrected by depreciations of EUR 2.2 million on PPA related intangibles and deferred tax liabilities of -EUR 0.5 million. The corresponding adjusted net profit from continued operations amounting to -EUR 7.6 million. The figures are representative of a typical seasonal start to the year, with cost discipline being practiced at the same time. Please flip to the next page. Page ten provides an overview of the main balance sheet items at the year-end. With just close to EUR 617 million in equity, the equity ratio came to 44.3% at the end of March 2022.
By far, the largest component in our non-current assets is unchanged. The goodwill position with EUR 487 million created mainly in association with the acquisition of HFS, HL, STAM and finally the Corestate Bank. Investments in associates and joint ventures have slightly decreased in the course of Q1 2022, results mainly from outplacement of project VISION ONE in Stuttgart metropolitan area. The balance sheet item, other financial instruments, which includes the opportunity fund and the Stratos Fund as largest positions, showed a slight increase from EUR 152 million- EUR 156 million, to which the aforementioned outplacement of the VISION ONE project also contributed. Inventories went up, in particular related to CapEx measures at Gießen property from the corresponding restricted cash account.
Contract assets increased significantly to EUR 72 million from EUR 59 million at the end of last year, primarily caused by the coupon participation fee. At other financial assets in form of our bridge loans went up by EUR 2.5 million - EUR 89 million. Total liabilities added up to EUR 766 million from EUR 779 million. Turning to the next slide, page 11, I will explain how things are going with our warehousing project in Gießen. The successful sale of our inner city shopping center in Gießen represents an equally important undertaking for Corestate. The placement of this yielding asset with a mortgage loan of EUR 52 million is a relevant part of our deleveraging efforts.
Considering the modernization measures carried out and the improved tenant structure as well as occupancy ratio rate in the last years, we are more convinced than ever of the increased attractiveness and value of this property. With a clear view of the markets and the emerging recovery of the retail asset classes after the corona pandemic, as well as the enhanced sales proceeds in terms of cash return, we have decided to restart the placement process for this asset. Our aim is to sell as large part of our investment in Gießen as possible. This was not feasible based in the previous sales structure. Therefore, after completion of the construction measures and on the basis of a higher rent ratio, we will start a new structured sales process in Q3. We will be working on this with a clear and stringent focus in the coming months.
Please turn on to page 12. I think you are quite familiar with this chart. What you can see at the end of the reporting period, we had around EUR 621 million of total debt. This contains EUR 143 million bank and other debt, including the EUR 52 million warehousing debt for Gießen. With our cash pile of more than EUR 70 million, considering additional EUR 90 million for leasing liabilities and our net debt stood roughly at EUR 533 million. Please remember, we have redeemed EUR 30 million for the HFS bond already last year and bought back a certain amount of our convertible bond for the time being. As we have already stated several times, the most important goal this year is to clarify the issue of open refinancing.
On the one hand, we will continue to work on the realization of our cash conversion program and clearly try to book the cash inflows, for instance, from the CPF, from the repayments of the bridge loans, and from the other asset placements. Given the small scale and complexity of the business, it is sometimes very difficult to reliably estimate the cash inflows in detail and to classify them exactly from the point in time. Especially as we are also dependent on the third parties for some of the items where we are not in the driver's seat and cannot determine the progress of the project independently. On the other hand, we have to perform our duties in the best interest of the company.
We are also looking at alternative approaches to refinancing the 2022 convertible bond as well as the 2023 note. To this end, we have engaged financial and legal advisors to help us evaluate and prepare all the options we have. With this, I would like to thank you for your attention and please flip to page 13. Stavros, turn to you.
Thanks, Udo. As mentioned at the beginning, the reasons for severe geo-strategic and macroeconomic challenges forced a highly dynamic interest rate environment with clear implications for sector allocation and asset valuation. The real estate sector is already affected by this in the early stage. On the investor side, this will in any case lead to significantly lower risk appetite and transaction volume in 2022. Added to this are our uncertainties on the corporate side, which are further fueled, not least by the open refinance issue and our external rating. Both together are likely to weigh on our new business and lead to significantly lower revenues in the current year, especially from acquisitions and performance-related fees. The high level of vagueness in our business forecast has led us to decide to withdraw our financial outlook for 2022.
Of course, as soon as the visibility on our operating business, the overall real estate market, and the implementation of our refinancing has increased, we will provide a new financial outlook to the capital markets. Until then, we will continue to work with high pressure on our key priorities, starting with the consistent de-risking of the company and the balance sheets slimmed down based on lower bridge lending, reduction of co-investments and alignments. In the coming weeks and months, we will continue to do everything in our power to free up liquidity at all levels and improve our net debt position as quickly as possible. In addition, we will continue to implement our efficiency program on the basis of the measures already implemented in the areas of personnel and non-personnel costs.
We have already achieved the minimum target of annual cost saving of EUR 10 million as of 2023. Finally, based on the adjusted strategy and comprehensive rebranding in combination with improved transparency and governance, we will reposition the company in the changing real estate world to the greater benefit for our investors, clients, employees, and business partners. I'm highly motivated and committed to achieving these important targets together with my colleagues on the management and supervisory board. With this outcome, I would like to hand back to the operator, and we are now ready to answer your questions.
Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. One moment for the first question, please. The first question is from Ace Thomas from Gritstone. Please go ahead.
Hi, guys. Thanks for taking my question. When I look at your presentation, you say that your real estate debt earnings went up because of increased fund profitability. When I look at your financial report, your financial report says that the increase was chiefly attributable to prolongations of Stratos II bonds. Can you explain to me what actually happened here? Were you just extending the loans, the duration and maturity of the loans in the Stratos II funds and then booking that as performance fees?
To correct you, this is not based on prolongation. Actually, it's not linked to the Stratos. It is maybe also linked to the Stratos II fund, but it's higher, but it's a general improvement of the underlying value of our investments.
Okay. I'm reading from the financial report you put out alongside the presentation, and you say, "This increase was chiefly attributable to prolongations of Stratos II bonds that strengthened the nominal base and thereby increased the fund's profitability." That's what you've published but you were telling me that is incorrect.
No, it's not incorrect. It's an addition to what is the underlying value of our funds.
What is the reference to prolongations there? Is that a change in the loan maturities in the Stratos II bonds?
What happens at HFS in our mezzanine investments is that we will have a monthly and quarterly review of all of our investments based on valuation and progress and the performance of the underlying assets. Based on that, of course, we will have on a pro rata temporary basis, also a share in our performance fees, on this underlying value.
The way I should understand that is by prolongations, you mean you revalued the Stratos loans and the valuations of the Stratos loans went up, and that improved the profitability?
Not prolongations. Again, it's not prolongation.
Sir, I'm quoting the report you guys published. I'm literally reading it out from your Q1 2022 quarterly statement.
Yeah, it's not.
Those are the words you used. Please stop correcting me.
Right, it's not only prolongations. Actually, it's the evaluation of the underlying.
I'm just trying to understand what the key driver is 'cause you say chiefly attributable.
Mm-hmm.
What was the main reason for the performance fees increasing? Was it a change in the valuations of the underlying loans, or was it a change in the maturity dates of the underlying loans? It sounds like you're saying valuations.
Yes. Right. It's a change in the valuation because this is the basis of the performance fee.
Then just on the one of the questions which has been relevant for the market here is whether or not there are changes in the maturities of the loans in the Stratos funds happening. Effectively, are loans being rolled at all? How many loans in the Stratos portfolio have had their loan maturity changed over the last two years?
Actually, this is not public information because we can only refer to. The Stratos Fund is not an open market vehicle. It's for our investors, and so we can't, and we are not able and allowed to disclose these non-public information.
I note from your prospectus in 2021 that the structure of these loans is typically PIK, so you accrue the interest, and the interest is only paid at the maturity of the loan when the loan is paid down in full. Understandably, one of the questions is, are these loans actually being paid, or are the maturity dates of these loans being changed? Is there anything you can tell us which would help us understand whether or not you changed the maturity dates of these loans?
Actually, the current turnover in this fund in terms of investments and new investments which gets redeemed, and new investments which we are stepping in is roughly on the average one and a half years. Based on this number, it's natural that we get repaid on the average in our mezzanine lending after one and a half years. Your indication is. Of course, we have if it comes to a hiccup in a loan, whatever, a delay on the development on their to receive construction permits in a project, then of course it can take longer. On the average, we have, and this is no statistics, a one and a half year turnover in this fund.
What period is that average over?
I'm sorry. We can have a separate dialogue in the aftermath of this call. We wouldn't use this time only, not only for one
Right. The reason HFS is important is because it seems to generate literally.
I'm fine with you, but again, I have to.
Of the company.
No.
Okay. I'll move on to another question. In the Stratos II and Stratos IV portfolios, are there any outstanding loans to related parties or former related parties?
Again, this is not a public information. I'm sorry. I will go now to the next.
Albeit, I mean.
I'm sorry.
You'd think that you'd have to disclose related.
We now go to the next question now, please.
You do not disclose the related party transactions in the Stratos funds?
Again, we will do this in the aftermath of this call. Thank you.
There is a related party disclosure section in your annual report. Are there related party transactions happening in the Stratos II and Stratos IV funds? If so, why aren't they appropriately disclosed?
Once again, I don't want to be rude, but thank you so much for your question.
The next question is from Manuel Martin from Oddo BHF. Please go ahead.
Hello, gentlemen. Thank you for taking my questions. I have two questions. Maybe we can go through them one by one. The first question is on HFS. It's on the impairment which has been conducted by year-end 2021. The impairment of the goodwill came, I think kind of surprise to the market. Beforehand everything seemed okay at HFS. Could you elaborate a bit on details what changed in the perception and why was there suddenly goodwill? Does this have future implications on revenues and profits?
Hello. Thank you for your question, Manuel. Regarding HFS fund. Firstly, it's still one of the largest mezzanine funds in Europe. However, we have some cancellations in the funds, which drove down the volume of the fund. This was the first driver of the goodwill impairment. The second driver, of course, in an increasing interest rate environment especially, or the terminal value of the valuation of the Stratos funds and the volumes in the funds, has an impact on the goodwill. The goodwill was rather on the high side because we acquired the fund basically in the boom times five years ago. Therefore we came now to the conclusion together with the auditors that we have to impair the value of the goodwill.
Okay. It drove up your WACC, you know, to use for the calculation, then I assume.
Yes.
Okay. Second question is related to the debt financing process that you're in. We have seen articles in the press yesterday also about PIMCO for example very interested to restructure the debt at Corestate as a major bond holder. And today the stock price is heavily dropping. Maybe we can go a bit into detail about the options you might have in mind. I mean, as far as I know, several possibilities that could be, for example, a debt to equity swap, could be a capital increase, it could be extending maturities. Do I miss anything or can you rule out something or give us a bit more light on the options that are on the table?
As you have seen, we have just started this process. We have agreed with a financial advisor to help us on this process and to review all these options you have stated, and all these options are on the table. We will now go into a valuation process of these options and then we will decide, and we will also make it public for what we have decided. Currently, we are at the beginning of this process.
Okay, good. Thank you very much.
The next question is from Andre Remke, Baader Bank. Please go ahead.
Yeah, it's actually Andre. Thank you for taking my question, and good morning from my side. A couple of questions. First, starting with the disposal of Gießen property. Did I get it right? You already signed the disposal at year-end or beginning of the year, with expected closings in April. Did you cancel the contract or did not close the contract, or was it the buyer, the initiatives of the buyer? And do you expect a higher value rather than you indicated so far, or was it only the matter of fact that the buyer canceled the deal? This is the first question, please.
Hi, Andre Remke. It's Kai Klinger. Thank you for your question. We are a little bit restricted because this is not really public domain information because it's a bilateral contract which we stepped in there. At the end of the day, it was, and we can only talk from our side, it was not feasible from our view to materialize a significant cash outflow of this deal. We have stepped out in the past. We have signed an agreement between 51% and up to 90% , and it was unlikely from our side that we would go much higher than the 51 percent in the sale of this asset. It was from this perspective very unattractive for us to stick to this agreement.
We have a mutual consent with the potential buyer or the former buyer that we will unwind this agreement. We will restart the marketing of this yielding assets in Q3 after the building and construction measures are completed. We can let up and have already increased the letting ratio beyond 80% and we will do it if we are at 90% because then it's much more attractive from the buyer's perspective.
In other words, you at least expect the figures you expected so far addressing disposal this deal?
We want to get the pulse of the entire.
Yeah.
We wanna place the entire assets and not only a 51% majority because.
Okay.
We will take the remaining 49% for the next 10 years.
Yeah. Okay. Thank you for the information. The second question is, you reported on the disposal of CAPERA. This seems to be at least, here I've got the signing or for the closing. Could you update on your also planned disposal of CRM? Is it also underway or is it for reviewing or again under review?
Well, again, this is something where we. This is not a big deal where we are talking about. We wanna do this in the best interest of the company, and therefore we need a certain market environment where we want to step in. Currently, we are happy with the successful placing of CAPERA also for an attractive price. The book value was around EUR 3 million and we are calculating cash inflows close to EUR 50 million.
This was for CAPERA, right?
This was for CAPERA, right?
Yeah. For CRM, please correct me. This roughly EUR 12 million last year revenues, but zero result. Is that right? now-
Neutral on EBITDA.
Yeah.
This is actually applicable for both, CRM and CAPERA.
Yeah.
Bear in mind, 2020 to 2021 and 2020 were very difficult years in terms of the pandemic. This is obviously not a regular business year. Usually, we were happy in the past to achieve EBITDA margins between 5%-10% for our property managers, which was in the past clearly a dilutive. This is also the reason why we are taking this out of our core activities.
Okay. Got it. Then the last question, again, back to the EY statement, and the auditors in the annual report, they were saying there could be another impairment on HFS if the extended or the expected strong recovery of the fund volume will not take place. Could you comment on your view on the operations in this environment? It's not long time ago that this was stated, but it seems to be that also you withdraw your guidance due to the most recent macro events. You mentioned this also entering the real estate market. Will this potentially also affect your expectation on recovery of fund volumes in HFS?
Look, the market is difficult currently. The market for leveraged financing is difficult and therefore on the other hand, we are also seeing the bank stepping out more and more of this market, and therefore we clearly see still some potential for private debt funds, as we have with HFS, in our portfolio. We have now to currently review the market environment and come back with numbers.
The very last question, you mentioned the efficiency program, cost savings of EUR 10 million. Did I get you right that you already reached this number or otherwise I misunderstood you? A related question, what are the costs for the implementation of the program, especially for this year into your accounts?
Of course, we have fulfilled internal measures to cut these at least EUR 10 million of costs already. Of course, as there's a certain delay until these cost savings will come into your P&L. We are currently calculating latest in the beginning of 2023 with that. We have in our 2021 accounts implemented in provisioning for that measure of around EUR 6 million-EUR 7 million. We currently have no further costs for that in mind. For the ongoing-
Sorry?
For the ongoing year. We have booked-
Yeah.
These measures already in the provisioning in 2021 and so on. We are currently fulfilled this already.
Okay. That's clear. That's from my side. Thank you very much.
Thank you so much.
Ladies and gentlemen, at this time we will close the question and answer session. I hand back to Dr. Kai Klinger. Please go ahead.
Thank you so much for listening, and we appreciate your interest and your questions. Do not hesitate to contact us for any further questions you may have. Once again, thank you. We look forward to speaking to you soon. Bye.