Kingstone Real Estate has launched an open-ended real estate fund focused on affordable housing in Germany.
The Kingstone Bezahlbares Wohnen Deutschland fund – projected to have a total volume of €500m, with equity capital contributing €250m – has already secured a high double-digit million euro amount from an institutional investor, the manager said.
The fund plans to invest in energy-efficient new-build housing construction, with at least 60% of the investment volume allocated to subsidised housing, Kingstone said, adding that the fund intends to include senior living accommodation and social infrastructure.
Tim Schomberg, managing partner and co-founder of Kingstone Real Estate, said: “Creating affordable housing is, and will continue to be, one of the most pressing tasks of the years ahead. We are glad to be able to contribute to the effort with our newly launched fund and to be offering a product that will potentially satisfy the ESG requirements of institutional investors as well.
”At the same time, such residential investments, assuming index-linked rents, offer a low vacancy risk, high value retention and income streams of long-term predictability.”
Schomberg added that the fund is currently reviewing a variety of assets and will soon announce its first acquisitions.
Klaus Niewöhner-Pape, member of the advisory board of Kingstone Residential Investments, said: “We are well-networked with experienced property developers who are about to complete and sell properties.
“We are also familiar with the complex nature of public funding programmes in Germany, and know how to secure the maximum in eligible funding for any kind of project. By taking advantage of low-interest development loans and long fixing periods, we will largely avoid the volatile interest rates of debt funding.”
To read the latest IPE Real Assets magazine click here.
