The investment manager KINGSTONE Real Estate (“KINGSTONE RE”) launches a new open-ended institutional real estate fund that will invest in affordable housing in Germany. It will have a projected fund volume of 500 million euros, with equity capital to account for c. 250 million euros thereof. The fund’s net cash-on-cash return is expected to average between 4.0 and 4.5 percent annually.
The plan is to invest in energy-efficient new-build housing construction. At least 60 percent of the investment volume is earmarked for subsidised housing. It is moreover intended to include senior-living accommodation and social infrastructure as an add-on component. The geographic focus will be on metro regions and conurbations across Germany, plus high-order centres and cities within the catchment area of metropolises. A first institutional investor already committed an amount in the high double-digit millions to the fund. HANSAINVEST Hanseatische Investment-Gesellschaft will act as the fund’s third-party AIFM. The fund is being advised by KINGSTONE Residential Investments, a subsidiary set up together with Pallino Real Estate.
Source: press release sent on 26 September 2024