KGAL Investment Management’s sustainable German residential real estate fund has made its first investment.

The manager said the KGAL Wohnen Core 3 fund has acquired the Wohnen am Candidplatz neighbourhood development in Munich-Untergiesing, expected to be completed by the end of 2023.

The fund has paid an undisclosed sum to buy the project which has 24,000sqm of rental space, including 355 residential units.

André Zücker, a real assets managing director at KGAL Investment Management, said: “Candidplatz, with its attractive links to the heart of Munich, is an ideal foundation investment for the portfolio of our new residential fund KGAL Wohnen Core 3.

”Thanks to the sustainable combination of refurbishment of existing buildings and energy-efficient new construction, as well as the modern mobility concept, the project fits perfectly with the ambitious environmental, social, governance (ESG) profile of our investors.”

Florian Martin, a managing director in charge of institutional clients at KGAL Investment Management, said: “The combination of the fund’s clearly defined, research-based investment strategy, commitment to ESG and the rapid implementation of the deal pipeline is proving to be very appealing to our customers.”

Martin said clients have already invested €445m of equity in the KGAL Wohnen Core 3 fund within months of its launch.

The KGAL Wohnen Core 3 fund expects a hard cap of €500m in equity.

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